The announced decision by the state purchasing agency — Turkish Grain Board (TMO) — on selling of 2 mln tonnes of wheat on the domestic market will not significantly impact on the import volumes of the grain to the country, reported the independent expert at SUNSEEDMAN, Veysel Kaya to APK-Inform journalists.
The reporting decision of the TMO about realization of interventions on the domestic market for sales of 2 mln tonnes of wheat in August-October of 2018, will not significantly impact on the import volumes of the grain, because Turkey usually re-exports the main imported volumes, said the expert.
According to APK-Inform analysts, in terms of the record devaluation rates of the national currency of Turkey (TRY), it is more appropriate for the country to increase the exports and decrease the import figures. Flour is one of the key export products of Turkey. In particular, the country also uses imported wheat for the production of flour. In the current season, the large-scale beginning stocks of wheat in Turkey (4.5 mln tonnes, according to the USDA) allow to the country to reduce the imports in comparison with the previous season — from 6.4 mln tonnes, to the forecasted level of 4.5 mln tonnes.
At the same time, in 2018/19 MY the forecast of wheat production in Turkey totals 19 mln tonnes, down 2 mln tonnes compared with the last year volumes. Thus, in the current season the total supply of wheat on the Turkish market will reach 28 mln tonnes, down 2% compared with 2017/18 MY (28.7 mln tonnes).
Due to increasing of flour production for the exports, Turkey will reduce the carry-over stocks of wheat. Therefore, the intervention sales are used as the effective tool to regulate the growth of domestic prices, explained V.Kaya.
You can receive more detailed information about the development prospects of the grain and flour markets in Turkey from reports of representatives of the Turkish delegation of grain processors within frames of the specialized international conference "Grain Processors Forum - 2018" (September 28-29, Odessa).
