Turkey to cut wheat purchases by one third
Turkey will import 6.5 mln tonnes of wheat in MY 2024/25, down 31% compared to the previous season, while corn imports will decrease to 2.1 mln tonnes.
It is reported by S&P Global Platts with reference to the USDA forecast.
The expected decrease in the volume of purchases of the mentioned grains by Turkey in MY 2024/25 is due to the new strategy of the Ministry of Agriculture and Forestry of the country to support local farmers.
In particular, from June 21 to October 15, the government suspended the wheat imports, after which the quota system was introduced until December 31, allowing buyers to purchase 85% to 100% of wheat from the Turkish Grain Council (TMO) stocks. Most traders expect Turkey to return to the global market next year if the restrictions are eased. Currently, 0.65-1 million tons of wheat are stored in Turkey’s customs warehouses. The domestic demand is estimated at 550 thsd tonnes.
As for corn, since the beginning of 2024 (January-September), Turkey has imported 3.2 mln tonnes of corn compared to 1.9 mln tonnes in the corresponding period of 2023, including 1.6 mln tonnes from Ukraine. The production of corn in Turkey in 2024 is estimated at 7 mln tonnes (-1.4 mln tonnes for the year), while the domestic consumption is forecasted at 8.4 mln tonnes. From October 10 to December 31, the government reduced the import duty on purchases of up to 1 million tons of corn from 130% to 5%. The lower import duty stimulated demand, however, as the new harvest is expected to hit the market in November, domestic prices declined, forcing exporters to reduce their offers. After a surge in interest, export prices on the Turkish market have declined to remain competitive with domestic prices.
The government is expected to consider extending the lower import tariffs to the beginning of 2025, given the continued demand for corn in the country.
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