Still fighting for the last potatoes?

The demand for good potatoes is increasing due to... replacement demand. Processors are struggling with previously purchased potatoes, which are not of the right quality upon arrival. For example, frying colour, germination and soft tubers cause rejections.

These potatoes had already been planned and based on the purchased potatoes, the German, Belgian and Dutch processors initially had enough potatoes in position. However, if parties drop out because of quality problems these will have to be replaced.

Storm in Belgium?
PCA clearly showed today (Tuesday, July 3) that the potato market in Belgium is developing rapidly. Belgapom was not listed last Friday, June 29, due to a lack of transactions. Now (4 days later) PCA quotes €1 for Bintje and €5 to €8 for Fontane. Since Friday there have been rumors in the market that Fontane has been traded for €6 on delivery week 29 to 30 (that is in 3 weeks). Today this is also confirmed by the PCA listing.

Whether there is much elasticity in prices will depend on the availability of the early potatoes. If the price continues to rise, the industries will switch to early potatoes. However, for now they want to save it for a while. If the drought continues, the early and mid-early potatoes will not produce the maximum yield and that could give the start of the season some relief.The potato futures market is making a significant jump.