General Outlook

March 15, 2005


Market in general quiet. Some buyers and sellers might joint the current IFE Food show in London, which causes market to be inactive from Turkey. Lacking in demands makes exporters refresh offers but they cannot appear with reduced prices due to constant over-valuation of Turkish Lyra. Cumin seed market goes on with no change. That prices has risen slightly, about 3%, does not mean buyers are becoming active. Anise, poppy, fennel, fennugreek and sesame are almost at the same level and buyers are inactive. We foresee laurel leaves prices will not be lower than current level. Exporters have enough hand-picked quality in hand but not willing to sell at a price lower than cost level. Little quantities of sage are left in exporters hand and they have no problems to sell this merchandise sooner or later as 1st graded product is scarce. Oregano market and prices are unchanged.

We witnessed complaints from exporters about over-valuation of Lyra. Apart from devaluation US dollar, but also Euro is is being devaluated against Lyra.

The problem of over valuation of domestic currency against American dollar exceeded Turkish borders already. Now, it is being clear that this is not a temporary issue and being serious each day. Increasing foreign trade deficit in American budget concerns every body because that may trigger a global sharp crisis all over the world.

We recommend you have a look at an article published on Newsweek By Robert J. Samuelson, http://www.msnbc.msn.com/id/7170226/site/newsweek.

Here is an extract;
“ … The real issue is whether the present pattern of global economic growth is inherently unstable—and whether it can be easily corrected. America's huge and expanding trade deficits have served as a narcotic for the rest of the world. As with all narcotics, resulting highs have been artificial and, to some extent, delusional to both the dealer and the addicts. The question now is whether everyone can go straight, before the addiction becomes self-destructive. It is whether the Asians can curb their export dependence; whether the Europeans can revitalize their economies; whether the Americans can control their overconsumption. … “


Mondial Int'l Agency Ltd.