Chess game Belgium – Netherlands started

The test grubs show that the hectare yield is above the 5-year average. This in combination with the increased EU-5 area (a plus of 3%) means that the mood has dropped to freezing point.

Catching up
The poorer areas in terms of growing season (such as Belgium and Northern France) have also been able to largely catch up due to the improving weather conditions. Varieties such as Fontane and Challenger appear to ultimately achieve the 5-year average. Only Bintje remains behind. Also with regard to quality. Reports about glassiness and low underwater weights cause concerns among Bintje growers.

The free potatoes
Dutch processors are not in the market for free potatoes. The contract obligations and co-delivery kilos are more than sufficient to meet their raw material needs. Suppliers of free potatoes receive bids when selling the potatoes from the field. People will therefore have to create alternative sales to get rid of the potatoes. Starch, flakes and, in the worst case, food seem to be the most logical option. The delivered potatoes are charged at approximately €4,50 per 100 kilos.

The offer from growers with free product is not picked up even for €3 per 100 kilos. In that sense it was striking that Fontane recorded €6 compared to €3 per 100 kilos for Bintje. A large Belgian processor is currently looking for Fontane, with the specification that it must come from clay soil. Not for direct processing, but for own storage.

Fontane's offer of sand would be ignored. Although the Belgapom quotation of week 37 gives a somewhat distorted picture with regard to Fontane (which grower is offering Fontane from clay today?) it does provide support for the market.

Large amount of water
Another support for price formation is the large amount of water that has fallen in various places in the Netherlands. While there were not many concerns about the precipitation last week, this has turned into a mild panic, especially in the south-west of the Netherlands. All hands on deck to release the water from the land.

The soil has been reasonably forgiving of water due to its good structure. However, now the jar seems to be fairly full and more water will certainly cause (more) damage. In addition to the 'Belgapom effect', local precipitation caused an upward trend on the futures market, with prices briefly above €8. What the 'rain effect' will have on the market in the coming week will become clear after assessing the damage and the weather forecast.