Inside: Potato Market
Will the futures market record 30 euros?
Unfavorable growing conditions in 2016 and the resulting limited stock of potatoes are currently pushing the futures market upwards at a rapid pace. The question arises: 'When will the June contract reach a level of 30 euros? Or, is this revival waited in vain?'
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Choose the subscription that suits youThe development of the potato futures market has a predictive value for the current development of the June contract. Particularly in the spring of 2016, 2013 and 2011, the proverbial bear was released after the April contract was settled. A similar movement is noticeable on the second trading day in May. The June contract closed on Tuesday, May 2 at 24,60 euros and is at 15 euros on Wednesday afternoon (30:25,70 p.m.).
30,57
euro
Compare with last spring
At the start of May, the June contract stood at 18,60 euros last spring. This then rose rapidly to 21,40 euros. Eventually the price stabilized around this level. Ultimately the price settled at 24,60 euros. If we compare this increase percentage with current developments, this means that the June contract will reach a top of 30,57 euros at the end of the term (June 2).
In the spring of 2013 and 2011, the process also shifted into a higher gear at the beginning of May. The June contract started in May 2013 at 29 euros, ending at a maximum of 33,60 euros. In 2011 this was from 18 euros to a top of 24,70 euros. In both cases, after two difficult harvest years: 2 and 2010, resulting in low potato supplies. The same ingredients that play a role now.
Spring 2017 is a turning point
It was known in advance that it was a matter of wasting time for potato processing for the 2016-2017 season. The spring of 2017 is a turning point for the market. How does potato growth start? As in the previous 2 years, this is accompanied by low average temperatures. This is expected to change during May. What affects potato crops in Western Europe most is the lack of precipitation.
A difficult start to the season has little predictive value for the entire season. The fact is that more area has been planted. Conditions were generally good and planting went smoothly. However, we can no longer expect an early harvest. For the current market, this means that things could get exciting in the coming weeks.
In the spring of 2016, 2013 and 2011, the futures market price rose sharply from May onwards. Are you interested in more historical data? Then visit the database.