DCA-Markets, part of DCA Group, introduces 2 new chip potato quotations for the market in Northwest Europe. This concerns the DCA Spot price for French fries (DCA-SF) and the forward price of this spot quotation (DCA-SFF). The quotations will be published for the first time on Friday 27 September 2019 on Boerenbusiness.
DCA-Markets aims to make the potato market more transparent, the company from Lelystad reports in a statement. The DCA Spot Price Chips Potatoes (DCA-SF) is a calculated value of the physical quotations of France, Belgium, Germany and the Netherlands. The spot price is published every Friday at 15 p.m. in the season in which the mutual quotations are announced, DCA-Markets reports.
The French part of the spot price is determined by the weekly RNM quotation, excluding the Bintje quotation. For Belgium PCA/Fiwap and Belgapom are included excluding the Bintje quotation and for Germany the Reka quotation for the Agria, Fontane and Innovator varieties. For the Dutch part, the PotatoNL and the PAT index are participating.
Convert and weigh
For a number of quotations in Northwestern Europe, these must be converted from 35 upwards to 40 upwards. According to DCA-Markets, this is done by a surcharge that is determined per year and amounts to €0,25 for this season. Quotations are weighted equally within a country, the organization explains. The weight per country in the spot price is determined by the share of the acreage for consumption potatoes and reviewed annually.
According to René van 't Riet, market developer at DCA-Markets, the DCA Spot Price best reflects the price development on the potato market. "It makes the market more transparent, because we look more closely at the relevance of varieties and weigh different markets according to their influence and importance."
Forward addition to future
Based on the calculated spot price, forward prices (DCA-SFF) calculated. These are valuable quotes for the futures market. "The forward prices provide insight into the price levels for all delivery months up to and including the end of the season. And thus form a very important addition to the future prices for potatoes on the EEX futures market in Leipzig," explains Van 't Riet. "The market could use our forward prices as an independent benchmark against which to settle physical contracts."
These forward prices are based on delivery on the last working day before the last Friday of the month. A storage fee of €0,15 per week is charged. From week 18 that is €0,25. The forward prices are recalculated every day with a converted custody fee on a daily basis. A forward price is calculated for all months remaining for that season.
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