Futures market of new crop chooses way up

The rising of the futures market is due to the cautious purchasing interest versus the limited supply. Growers are slowly getting into the mood to hedge, but they are taking their time to do so. This has to do with the large volume of potatoes that are grown under fixed-price contracts. This means that the quantity of potatoes to be covered is smaller. For the 'icing on the cake', free and co-delivery potatoes would have to be covered at a higher level.

The mood is good
Despite the negative sentiment about the old harvest, the European acreage not shrinking and the planting season almost complete, the mood is good. New round, new opportunities is the motto. The month of May seems to be a dry month and that in combination with the plant later of the main harvest gives some mood. An above-average yield, such as in the 2017 harvest year, seems to be disappearing.

The chip sales market is in good shape
The chip sales market also seems to be in good shape for the 2018/2019 season. The added processing capacity can now be fully utilized. This means that demand could well turn out to be higher throughout the year than last year (perhaps resulting in a healthier market).

The result of an increasingly fixed market also ensures an immediate movement on the market when demand arises. In short: the limited amount of free potatoes has a major impact on the volatility of prices.The futures market is choosing the upward path