Price of free potatoes climbs out of trough

The big processors are not on the market, but more importantly; one does not have to reach the market because of the easy and compelling offer. Many batches showed storage problems and were therefore sold early and at low prices. The importance of purchase was greater than the height of the price.

Visible change?
However, that now seems to be turning. Belgium and France are not shrinking yet and trade (and demand) there is therefore minimal. The Bintje variety in particular plays an important role, because of the continuing supply of moderate quality. The lack of sales to alternative channels also determines whether the market remains under pressure.

A bright spot in the Belgian quotation is Belgapom's comment that the mood in Fontane is described as fixed, which implies that there is now clearly less compelling offer for the Fontane variety. However, in the Netherlands and Germany the maps are slightly different.

Pressure from mediocre parties disappeared
With the opening of the gates of the starch processors, the pressure of the moderate parties seems to have disappeared like snow in the sun. Where there used to be a problem with a compelling offer from deviating parties, these can now easily be sold to the starch processors. This has determined the bottom of the market and it has suddenly become difficult to buy potatoes at rock bottom prices.

Now that there is some demand for good potatoes, it turns out to be quite a task to buy free potatoes for prices around €4. Many growers who have good free potatoes are not in a hurry to sell them. Courage is being drawn from the rising futures market, the bad weather conditions in Southern Europe and the good storage weather, which make it easy to keep the potatoes in the shed. Also the cold spring weather helps with the idea that spring can sometimes start a little later.

Downside risk's
However, the main argument is that the downside risks for a free grower (at these price levels) are not great. If €4 can be made today, it will certainly be possible in the months of May and June. At least, that's the thought. After all, there is gambling with very little money.

In the search for freely tradable potatoes, the growers with the good potatoes are not (yet) prepared to supply at these low price levels. The real free keeper has no intention of opening its doors anytime soon (at least as long as quality allows) for prices below €7,50, something the June listing reflected in the futures market.The closing price of the June quotation on the potato futures market.

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