Inside Potatoes
End of April 2019 contract, cash settlement announced
It was last possible to trade on the April 25 contract on Thursday 2019 April, which means that the closing quotation is also known. What does this lead to, and what does the final cash settlement do?
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Choose the subscription that suits youBoth the Belgian contribution (€25,08) and the French contribution (€26) for the cash settlement have remained unchanged compared to last week. The Dutch contribution for this week amounted to €31,54 (+€0,44), which is a fraction higher than last week. The contribution from Germany (€28,85) was also slightly higher (+€0,01).
Turbulent season
Without exaggerating, we can speak of a turbulent season on the futures market for the April contract of 2019. After the 2017/2018 season had been extremely negative, with the settlement of the April contract for 2018 at only €5,80, a lot had to be done to to make the market (in terms of mood) make an upward trend.
In retrospect, the fact that a lot happened last season is an understatement. In almost all major potato growing areas in Western Europe, the persistent drought has had significant consequences for average hectare yields. The futures market quotation, which fell to a level well below €1 10 year earlier, rose to €28 in week 20 and then rose to €2 in 30 weeks.
Unique situation
The unique thing about this season's market situation was that the April quotation remained around the €30 level at the start of the new year, with the highest price level being €33 (in week 3). The general expectation was that the April quotation would settle around the €30 level, but the fall in the price of the Belgian quotations (Fontane quotation fell from €30 to €25) caused the futures market to fall from €29 to €26,50 in a short time. .27,90. Ultimately this was settled at €XNUMX.
