Although the potato season has been more than disappointing from a price point of view, the mood for the coming harvest year is quite optimistic. This despite the fact that the average market price did not even reach the €5,00 level for a long time.
This tells us from the current April 2019 quote that closed on Friday 13 April at €15,10. In that sense, there has clearly been some evolution of the potato market over the last 10 years. A few years ago the $15,00 level was a magical first upper bound, today it seems more like a starting point.
Hunger for raw material
An important reason for the higher starting point in terms of price level compared to a few years ago, is the processors' unprecedented hunger for raw materials and therefore the required cover. A large part of the coverage is obtained by recording (contracting) the potatoes, but even then there is an upward risk for the remaining volume and the potatoes that are settled on the included price.
The grower, on the other hand, has also been looking for more certainty in recent years by using the different contract forms so that if he seeks cover on the futures market for the remainder of his expected volume of potatoes, he waits for a peak in the growing season (e.g. € 17,00 +)
global demand
Despite the fact that the acreage in the EU-5 countries will not or hardly decrease for the 2018 harvest, a market full of expectations is on the way. The growing season and the ever-increasing fashion demand for end product is the most determined factor for the price development in 2018/2019.
© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.