The Belgian PCA/Fiwap records double digits for French fries potatoes for the first time in ages. Is this a harbinger of further price increases or just a temporary rebound?
The price for Fontane at PCA/Fiwap today (Tuesday, May 4) is €10 per 100 kilos. The exchange notes that higher prices are offered for later deliveries and even more interesting: the market mood is fixed and the supply is limited. The PCA quotation is thus ahead of the Dutch PotatoNL, which quoted an average of €3 for Fontane yesterday (Monday 8,50 May). In recent weeks, PotatoNL has actually traded higher than PCA/Fiwap.
Bottom price too low?
The bottom of the PotatoNL quotation for category 1 suitable for fries and the rounder chip varieties (such as Fontane) has only increased by €0,25 compared to a week earlier to €7,50 per 100 kilos. Growers who still have free potatoes in storage are expecting a price recovery at the end of the season. To achieve this, they had to invest heavily in germination inhibition and other storage costs. Long-term storage may seem to be somewhat worthwhile this season.
The cold spring so far is inhibiting the growth of the early potatoes. Various sources speak of a 2 to 3 week delay. That strengthens the sentiment at the end of the season. It therefore seems logical that other quotes will also adjust the lower end of the price upwards in the coming week.