Potato market on the eve of price jump

Belgapom's quote was unchanged for the third week in a row on Friday, April 26, although it did send a signal by recording a fixed vote for Fontane and Challenger. The undertone is also firmer on the Dutch potato market, which is mainly due to demand from export destinations. However, the processing industry still shows little purchasing interest, although the DCA PAT Index already seeing a recovery with a transaction of €29,50 for Fontane.

Thin offering
It is striking that the supply appears to be very thin, given the increasing demand. There are few free lots available, which makes buying potatoes (at any level) a difficult task. With the settlement of the April 2019 contract, the market also seems to be throwing off the yoke somewhat. The 2019 June contract immediately showed an upward movement on Friday, April 26, and had a closing position of €30,50 per 100 kilos.

The table potato market is also gaining momentum, which is a signal of a steady market. The export demand is broad, a clear need is seen from both Eastern and Southern Europe. For example, consignments of Fontane have already been traded for export this week for €32,50 per 100 kilos, ex farm. Bintjes that are suitable for export also seem to be creeping towards the €30 level without any problems. This is in stark contrast to the €20 quoted in Belgium.

Spring work almost finished
The spring work is almost over, seed potatoes appeared to be widely available and the early potatoes have lagged slightly due to the cold weather. It is not clear whether the drought will also have an impact on this. In any case, old harvest stores well with the current night temperatures, so that is not where the 'compelling supply' will come from for the time being.