Turkey eases wheat import quotas ahead of local harvest in June

Turkey has further eased its wheat import policy, allowing at least 75% of buyers' wheat purchases to be acquired from the country's grain board stocks, and the remaining 25% can be sourced from global markets, according to a letter citing details from the ministry of trade seen by S&P Global Commodity Insights Dec. 23

This policy will remain in effect until May 31, coinciding with the local harvest expected to begin in June and July. Importers are required to fulfil their 75% quota through the Turkish Grain Board (TMO) before accessing the remaining 25%. They also have the option to meet their entire quota through TMO.

Previously, importers were mandated to purchase at least 85% of their wheat from TMO, with only 15% allowed to be procured internationally under the country's inward processing regime for imports.

Despite the easing of restrictions, buyers said it is unlikely to significantly increase Turkey's demand for wheat as the country has large wheat stocks of approximately 1 million mt stored in bonded warehouses.

The easing of restrictions does provide a glimmer of hope for further adjustments in February and March, potentially leading to a complete lift of the percentage limits, a buyer said.

"We can still keep some hope on the percentages easing further," another buyer said.

Millers have also expressed concerns about the quality of the wheat they are able to access and their diminishing market share in the international markets. With limited stocks available at some local TMO warehouses, full imports seem to be the most viable solution, according to a trader.

As the wheat export tax in Russia increases and Turkish warehouses remain filled with wheat, the likelihood of new business opportunities emerging appears slim. Many traders are still carrying goods from mid-2024, and the focus now shifts to cleaning up existing stocks before any new imports can be considered.

"First we need to clean up [existing stocks]," a miller said.

Platts, part of S&P Global Commodity Insights, assessed CIF Marmara 12.5% wheat at $221/mt Dec. 20,the highest level since Nov. 28.

Prior to the introduction of the quota system, Turkey had suspended wheat imports from June 21-Oct. 15, citing a need to protect domestic production.