Last week it was confirmed that the potato market, with 20,00 euros, has a solid bottom. The fear of a further decline seems to have turned and the price difference between the futures market and the (physical) Cash Settlement price has been closed.
The stable and slightly friendlier market, without many transactions and hectic activity, is caused by a number of factors.
Striking potato quotations this week
The white raven this week was the listing from Emmeloord. This had a lower quotation at the bottom. The other quotations had a stable appearance. A number of things stood out.
Export demand does not make chip makers nervous
Demand from exports remains present and they are clearly going for better prices. Spain, England, Portugal and Switzerland buy high-quality potatoes, mainly of the Markies and Agria varieties. However, they are not large volumes. These cannot therefore make the difference in making the processing industry in the Netherlands, Belgium and Germany nervous.
Negative expected value less large
The futures market has fallen short of its negative expected value in recent weeks. With 5.200 contracts still open, the futures market and the parties that hold positions appear to be waiting quietly towards the end of the April 2017 contracts. It is the effective market that will determine whether there will be any further movement on the futures market.