Heat cools potato futures market

The weather reports in France and Belgium indicate a considerable chance of rain for the weekend, which means growers expect growth to recover. Buyers were difficult to find today and were cautious in anticipation of further weather developments. Where in the past people often acted actively and speculatively and participants acted much more expediently, nowadays the credo seems to be: first see and then believe.

That makes the futures market more volatile than ever before. The heat that is spreading across Europe today and in the coming days is breaking all records. The big question is what the consequences are for the potato plants and how the crop responds to the scorching heat. It is starting to look like the potato growers who cannot irrigate are screwed for the second year in a row. There is already little moisture in the soil and the persistent drought, followed by the heat, damages the final yield.

Do trial harvests
This week, the various processors will carry out trial harvests of the main harvest of potatoes for the first time. Then it becomes clear where the 2019 harvest stands in the list of yields of the past 10 years. The first indication we received from Belgium indicates that revenues are comparable to last year. This is somewhat surprising, since the general picture is that the crops are fresher and there is clearly 'more' in the back.

The market ultimately determines the price and the futures market today reflects the confidence of growers and trade for this season.