Harvest tension takes market to the top

Time is slowly but surely passing and more than half of the potatoes in the Benelux still have to be harvested, which will be quite a challenge. Belgium in particular has a major challenge in keeping the factories running last and next week. Belgian processors are busy shopping in surrounding countries for potatoes to supply the chip lines. Higher prices are also paid for this than the Belgapom lists. Moreover, in Belgium no higher prices are paid than the quoted €3, simply because no transactions take place and there is no offer due to the inability to harvest.

Request from custody
There is also more demand for potatoes from storage. Non-Dutch buyers are looking for potatoes for the period April-May-June. It appears that the Belgian processors have lower coverage than the Dutch processors, because they pressed the brakes harder on contracting in March during the lockdown. The low potato price creates room to create fries sales during this period and therefore also demand for potatoes during that period.

It is difficult to buy, because few growers are willing to make an offer around €8 for the mentioned period. Growers who do have potatoes in the shed find the bids on the low side and growers who still have them in the field indicate that they will first harvest them before thinking about selling.

Increasing turnover
The futures market is a reflection of the sentiment currently prevailing in the market. The price is trending higher due to reports of poor yields of Belgian potatoes and the fear of not being able to harvest the potato harvest. We are also seeing turnover rise again on the futures market. Hedgers are withdrawing some of their coverage and buyers are reducing their position slightly. The weather forecast and the progress of the potato harvest will determine the mood on the futures market in the coming weeks.