Inside: Potato Market
June futures market bursts like a bubble
The importance of the Cash Settlement in the potato market has once again become apparent this season. There is a lot involved when it comes to paying for the potatoes.
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Choose the subscription that suits youIt was not as expected that the Cash Settlement for week 17 would be €5,80. The expectation at the time (around the turn of the year), with regard to the final Cash Settlement for week 17, was that it would end up around €4 to €5. The slight inflation of the market resulted in the thin June quotation (in terms of liquidity) rising to €10 in a short time.
Listing falls apart
With the settlement of the April quotation it turned out that the bubble of the June listing burst. On May 4, the market fell back to the level of €7 (last week €8). Parties are now suggesting that supply will increase (due to the good weather).
However, the argument is weak, because the supply (stock) was/is large. That would inevitably result in supply. The question is whether, with the last Cash Settlement of the season in sight (June 1), the April settlement level (€5,80) is feasible. In other words: a lower settlement of the June quotation versus the April quotation is not inconceivable, but time will tell us to learn.
The June quotation for the potato futures contract.
The importance of the Cash Settlement has again become clear this season.Want to see more charts? Visit the Database.