The period in which the potato pool prices are announced has arrived again. What can you expect from the potato pool prices? Boerenbusiness put it all together in a nutshell.
In order to say something about the price level of the 2018 potato harvest, various price indicators have been compared. This concerns the DCA PAT Index, the DCA Potato Bingo, the average potato chip quotation of PotatoNL, the April contract on the potato futures market and the cash settlement.
The average price level of these 5 quotations is €28,41 per 100 kilos. The April contract (the sale on the EEX futures market) and the DCA Potato Bingo score below the average price and the cash settlement and average quotation of PotatoNL actually score above the average price. Also the DCA PAT Index scores slightly above average.
Highest and lowest ranking
The difference of a maximum of €4,18 per 100 kilos between the highest and lowest price is mainly due to price formation during the season. The Potato Bingo and the April contract on the potato futures market both participated at the start of the sales season, but the price was still at a relatively low level. This is also the reason why PotatoNL's average chip potato ranking comes out on top.
Whether the result of the various potato pools is above or below €28 depends on the sales strategy: how many potatoes have been sold in advance, and how many at the peak of the market? The pools without pre-sales certainly have an advantage, as the results are expected to show.
Free grower versus the pool
Anyone who tried to achieve a higher price through free sales had to come from a good background this season to beat the potato pools. This was only possible if you locked in your price at the optimal time on the futures market. These moments were in weeks 30 and 31 (maximum price of €32 per 100 kilos) and in weeks 3 and 6 (maximum price of €32,90 per 100 kilos).
The listing of PotatoNL also provided opportunities, because the average rose at the end of May chip rating to a high of €35 per 100 kilos. Potatoes suitable for fries, category 2 (for export abroad) were even higher and reached a peak of €36,50 per 100 kilos.
Disappointing feeling
Despite a very high price level, especially compared to the previous season, not every potato grower probably goes home with a satisfied feeling. There was a feeling, especially among free growers, that the market could have climbed to a higher price level in the second phase of the season. However, that has not happened yet.
The last leftovers of old potatoes are also traded at average prices (for this season). This means that the potato pools are expected to deliver an excellent performance, with growers able to share in what the market had to offer.