Futures market firmer, physical market weaker

It is a striking movement, given the very calm mood in the physical market. There is little demand, while trade and industry report that supply is increasing again. Especially from parties that cause problems in storage.

Most pressure removed?
At the end of 2017, most of the pressure seemed to have disappeared, but today new problem parties seem to be emerging. This is a worrying development, because it could be an omen for a longer period of compelling supply.

In the longer term (halfway through the second quarter) this may lead to a recovering price formation. That is also what the June futures market quotation shows. Despite the abundant harvest, several growers report that the net yield upon delivery is disappointing. A lot of tare and waste are frequently heard messages.

Belgapom shows listing
After 9 weeks, the Belgapom quotes have finally been able to put a price on the board again. With a quotation of €2 per 100 kilos for Bintje and €2,50 for Fontane and Challenger, this is one of the lowest quotations of the past 5 years.

Belgapom's listing could also have an impact on other listings in Europe (particularly those in Germany), which could offset the cautious recovery of the Cash Settlement. However, the futures market is currently not paying much attention to the extremely weak price formation, especially in Belgium and France.

At this low price level, with regard to the futures market, there are few sellers (certainly no hedgers), while demand continues to creep in at the lower end. As a result, the futures market shows the stronger undertone already discussed.The April contract closed at €5,30.The June contract closed at €7,20.