Inside: Potato Market
Three more weeks to go, price is going up
The undertone of the potato market is also good this week. The supply of free potatoes is limited. This is due to the low price and the decrease in batches that have to go because of the quality.
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Choose the subscription that suits youThe program later spring also gives a positive sentiment on the price. Many growers are cautious about offering, partly because they no longer experience price risk. The bottom has been seen and there is only upward potential, or so the credo seems to be.
In Europe, the Netherlands is now the fastest riser. In the Cash Settlement the country shows an increase of €1,18, with Germany showing a decrease of €0,09. It will be interesting how the market will develop in the coming weeks. Will the effective market continue, or will the futures market have to return to the Cash Settlement price? Demand in the physical market will determine this.
Good free potatoes
The thinness of the market can (with increasing demand) cause the price to rise quickly, something that has already become apparent in recent weeks. Especially the good free potatoes, from the popular varieties such as Markies, Agria and Innovator, can then quickly rise in price.
This is also demonstrated by a transaction on the PAT (Platform Potato Transactions) for Innovator (delivery week 17) at a price of €7,50. A transaction by Markies (€8,75) also shows that, if there is interest, a significant premium must be paid for free potatoes.
The weather is decisive
The second factor is weather. Spring seems to be in full swing in the coming week, which means that people can go out into the fields to plant the early potatoes. A delay of up to 2 weeks (compared to last year) does not seem to be an insurmountable problem.
The other threat to price is the temperature. As temperatures rise, supply will increase again. Various weather reports now even mention 20 degrees Celsius. That could have consequences for the price.
Ultimately, the futures market and the physical market will touch each other in week 17. With 3 weeks to go, and with a premium of €1,20 between the Cash Settlement and the futures market, something will certainly happen.
The futures market versus the Cash Settlement in the 2016 crop year.
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