It is always difficult to get trading going again after a Christmas and New Year period. At the beginning of the week, the market was therefore calm and was even slightly under pressure. In the Netherlands there was hardly any trade and only some potatoes were bought from industries by means of co-supply contracts.
Prices for Fontane are rising in the Netherlands towards €14,00 and Innovator is selling for €16,00 for direct delivery. The futures market also fell towards €17,50. This was mainly caused by hedgers who found the premium between the daily market and the futures market too high. The reports that grubbing up operations were taking place again in various places in the Netherlands and England also caused the market to move slightly negatively.
It is clear that demand is well maintained in the medium and long term. There is purchasing interest from all processors in Europe for potatoes suitable for fries in the period March and April. The Innovator variety is particularly in demand. This week, a processor issued a tender with the price range from €14 for January to €17 for April (delivery week 17).
Price rises
On Thursday it became clear that Belgian processors could not obtain enough Fontane for €12,50 and that the price would increase. Several Belgian growers already registered on Thursday Boerenbusiness that €14 was bid. On Friday, after being quoted at €10 for 12,50 weeks, the Belgapom quotation was increased to €14 for the Fontane variety.
The futures market had also climbed towards €18 on Thursday (after a dip of €17,50) and closed today (Friday 10-1) above €18. This was accompanied by small turnover (27 contracts).
Dutch processors remain quiet in the market. Offers from lots that were harvested in poor conditions keep the pipe smoking. Processors don't have to put in much effort to acquire extra potatoes. The demand for potatoes for March, April and May from Dutch processors is mainly based on keeping cover. This is because a number of lots that were intended for long-term storage are now being collected early.
Export must support
The most important support in the market must come from exports, which are still quiet. Processing is going well and sales of fries outside Europe are clearly ahead of last year.