Turkey: Grains board increases intervention prices for barley and wheat

The Turkish grains board (TMO) has published new domestic intervention prices for the purchase of wheat and barley on June 6, revealing another substantial hike of 28% and 23% respectively, trade sources have told Agricensus.

The announcement had been expected and usually comes in late May or early June to coincide with the start of the new marketing year.

Turkish authorities have set the wheat intervention price at TRY8,250/mt, up from TRY6,450/mt, and barley at TRY7,000/mt, up from TRY5,000/mt.

On top of that, there would be a TRY1,000/mt premium for anyone selling wheat in the first three months of the marketing year, and a TRY500/mt premium for barley.

Collectively, it equated to $430/mt for wheat and $348.50/mt for barley, according to current currency conversions.

The moves are likely to reflect the continuing slide of the domestic currency on international markets, with the lira again taking a battering after the re-election of president Recep Tayyip Erdogan to plumb new depths against the US dollar.

Currently, one US dollar buys around TRY21.5, up from TRY16.6 at the same point of last year.

However, the increase and the relatively low prices of global wheat could fuel interest in selling into the domestic market and buying on the international market.

“Obviously, the import license values will soar immediately,” a trade source commented as news of the increase circulated.

Currently, the only people able to import wheat are millers who would only be able to secure permission if they have exported the flour before.

For anyone else looking to import wheat, market participants would need to buy a license – a measure that now looks attractive given the high setting of the intervention price.

06 June, 2023