Inside: Potato Market
Physical potato market quiet in the summer sun
The potato market seems to have entered calmer waters. After 2 rapidly increasing weeks, it is now time for a pause. Due to the small supply and the many increases, it seemed that the market would quickly rise to 30 euros.
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Choose the subscription that suits youThe Belgapom quotation remains at 25 euros. With the lack of an increase in that quotation, the genie was somewhat out of the bottle. Processors have things in place for the short term and are not super active in the market. There is some buying interest further afield (June/July), but there is no supply available at the moment, or for such high asking prices that buyers are staying away from the market.
Weather
How the connection with the early potatoes will proceed will determine the further development of the market. The warm weather is doing the plots quite well, but drought also seems to be becoming more prevalent. However, the first rain reels are already running in the early areas to maintain good growth.
Easier offer given
The warm weather also ensures slightly more supply from the grower's side. It is not the free potatoes that are offered, but the growers with obligations want the barn empty now (the internal temperature is also rising). The fact that co-delivery kilos are also automatically released causes cautious purchasing behavior on the part of processors of free potatoes.
PCA/Fiwap
The decline in the Belgian PCA/Fiwap listing did the rest today. The reduction from an average of 2,50 euros to 25 euros also means that the Belgapom listing is viewed with more uncertainty. If this does not hold, this will have consequences for the Cash Settlement. Something where the futures market already took a lead by falling back to 26,60 euros.
