Confusion physical market does not allow futures market to rise

Physical market in motion
The demand for potatoes increased mainly from trade. This was partly due to further reports of persistent cold and further growth retardation of the early potatoes.

According to the latest data that Boerenbusiness has gotten hold of, the potatoes now have a growth delay of 19 days. That's compared to this week's 5-year average. This must be used to fill further gaps. As is known, stocks are very small given the availability of free potatoes. The demand for potatoes is therefore rapidly exploding the market.

Futures market reaction
It is important for the futures market how the Cash Settlement develops. Looking at the development of the quotations is very important. Quite a few physical things were done this week. It is striking that it is mainly the trade that has become buyers. The Dutch chip industries hardly or not at all report to the market and indicate that they are well covered.

Belgium
More commotion can be observed from Belgium. This week they traded at 30 euros free of charge (Bintje and Fontane). But also on Tuesday morning, May 9, trading took place for 26,50 euros free of charge. The thinness of the market, the obligations between growers and buyers based on stock exchange prices or cash settlement prices, means that the market has become less transparent. This also makes the market very erratic. It makes buyers on the futures market cautious and the motto seems to be: first see and then believe.

With the release of the PCA listing, reluctance returned to the futures market. This quickly fell from a top of 29,50 euros to the lowest point of the day and also closed at 28,20 euros. The physical market determines and therefore the futures market gets lost. At least, that's what it seems like. In any case, it is clear that the old harvest is far from finished and that the last chapter has not yet been written.