June 11, 2024 - The Ministry of Agriculture announced on June 21 that it would halt wheat imports until at least October 15. This decision was taken to protect farmers from price fluctuations, to ensure that raw materials are supplied from domestic sources and to create a favourable market for producers.
US and European wheat futures fell sharply following the announcement, with both markets losing around 2 per cent. The move is expected to severely affect wheat exports from Russia and wheat destined for Turkey will have to be sold at lower prices in other markets.
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As the world’s fifth largest wheat importer, Turkey buys most of its wheat from Russia. Therefore, this decision caused major impact on the international wheat market.
In a statement released by the Ministry of Agriculture, it was stated that wheat imports will be halted and additional measures will be taken to protect producers in line with the recommendations of the Ministry of Trade.
Wheat prices fell to the lowest levels of the last one month as a result of the news that Turkey will stop imports and the decrease in demand expectations. Wheat futures contracts traded on the Paris and Chicago stock exchanges fell sharply after Turkey’s decision.
The effects of this decision are felt not only in Turkey but also in the global wheat market. Turkey’s decision to halt imports may lead other countries to reconsider their wheat procurement strategies. This may cause wheat prices to fluctuate in the coming months.
Turkey’s decision is considered as an important step to support domestic production in the agricultural sector and increase the market share of farmers. However, the impact of this step on international wheat markets will continue to be closely monitored.
The Global MillerThis blog is maintained by The Global Miller staff and is supported by the magazine Milling and Grain
which is published by Perendale Publishers Limited.
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