The price of wheat in Turkey increased from 2250 TL/t to 4500 TL/t in the last year. Wheat prices reached 6500 TL/t for a few days in December, informed Magazine BBM.
The prices increased due to the lower production in Turkey amid the drought. Stronger prices on the world market as well as lira devaluation pushed the wheat prices up too.
According to the official figures announced, around 20 mln tonnes of wheat was produced in Turkey in 2020. However, because the drought in 2021 caused yield losses of up to 70% in some places, yield estimates are revised with a sharp decrease. According to the TURKSTAT, in 2021, wheat production decreased by 13.9% and fell to 17.7 mln tonnes. Experts estimate that the wheat harvest for 2021 will vary between 12 and 17 mln tonnes.
According to Kesmezlioglu Grain Trade, Turkey has imported 7 mln tonnes of wheat so far this year and is using its sizeable storage capacity for re-exports, informed Argusmedia.
Rising macroeconomic concerns have also shifted Turkey's grain import patterns, with commercial risk appetite declining gradually. Both private buyers and state-owned grains agency TMO have shifted to spot purchases this year from long-term deliveries.
Turkey is expected to import 11 mln tonnes of wheat in the 2021/22 MY, under US Department of Agriculture estimates, up by 8.08mln tonnes from a year earlier.
You can get more detailed information about the development of wheat market and trade prospects at an international conference Grain&Maritime Days, which will be held on May 24-25 in Istanbul, Turkey.
