With the transition from the early harvest to the main harvest, the offer seems to become less compelling. The fact is that the early potatoes are rarely handled so early, which makes the market feel 'clean and healthy'.
In seasons with sufficient potatoes in prospect, the 'bulldozer effect' usually caused a false start to the market. However, that is not the case this season. The new season has started more than on time. This after the extreme year of 2018, when the last potatoes had to be scraped together and the new harvest was therefore quickly moved to.
Unchanged listing
Belgapom's price is unchanged on Friday, August 30 (€10,00 per 100 kilos), but it does use a fixed voting rate. That is often a harbinger of a possible step up the following week. It is reported from the field that growers are less willing to supply based on current price levels. There seems to be no pressure and the nice weather of the past week creates a more positive mood.
This friendlier mood is reflected in the futures market quotation for April 2020, as this quotation has found its way back towards the €15,00 level. This after the dip towards €11,50 a few weeks ago.
Starch and flake industry
Another important factor for a solid foundation is the undertone in the starch and flake industry. Yields in the most important starch potato areas are disappointing for the second time in a row this season. The northeastern Netherlands and northern Germany in particular have suffered from the prolonged drought, which has now resulted in a mediocre harvest.
The significant drop in the market price for chip potatoes has reduced the enthusiasm of growers with dual-purpose varieties to supply the industry. Moreover, Dutch processors are hardly active in the market, which is due to the high contract coverage. However, due to the transport costs, it is not interesting for growers with dual-purpose varieties to supply to the Belgian industry, based on current market prices.
Ware potatoes
However, the opposite applies to consumption potato growers. If the prices of consumption potatoes fall further (for example to €8,00), it will be interesting for consumption potato growers to seek sales from the starch industries. This creates a natural floor in the market. The fear of extremely low prices (as was the case in the 2017 harvest year) does not seem to exist. Confidence in 'normal pricing' is gaining the upper hand.
Demand is not expected to increase suddenly. This is because the processors can largely manage with the contracts. However, the fact that the supply is drying up somewhat means that there is a possibility for a slight increase in the market.