Since not all potatoes have yet been planted in Northwestern Europe, the mood on the potato market continues to excite. The slow development of potatoes is causing more and more tension on the market.
The connection from old to new harvest seems to be becoming increasingly difficult. The early potatoes in particular are lagging behind in development and growers cannot imagine that the first potatoes will be harvested in 10 weeks. As a result, the processing industry will be forced to produce fries from old harvest potatoes for a longer period of time. This means that the bottom of the physical market has moved slightly higher again.
The catering industry is opening carefully
The other ingredients for a perhaps spectacular end to this season lie in the further opening of the catering industry in Northwestern Europe. Vaccination seems to be slowly but surely paying off and the pressure on ICU departments is slowly decreasing. European countries are therefore loosening the reins (very carefully) and allowing catering visits again. Sales of fries are picking up again and processors are stepping up again to meet demand.
The quotations in the various countries are showing an increase this week. The market clearly appears to be settling around or above €10. Another step up seems too early. The offer is currently around €12 from growers, but the processors are not willing to pay much more than €10. Unless it concerns potatoes from mechanical cooling that can be delivered at the end of June. The price will then slowly creep towards €15, at which point no business has yet been done in the French fries segment.
The fact that the daily market price has not risen further is also reflected in the futures market. Today the futures market for the June contract could not stay above €11. With 15 trading days to go, participants do not yet seem to be convinced that the physical market will rise €3 in 2,50 weeks. Buyers wanted to reduce their position above €11 today, which was still difficult due to the limited demand on the futures market.
slow start
The new harvest showed an increase again in response to a colder weather forecast. The smaller shrinkage of the area seems to have already been reflected in the price. The market now focuses on growing conditions in Northwestern Europe. The cold remains the main driving force. Many growers are concerned about the emergence, the number and the lag in development. For many plots in Northwestern Europe it will be quite a (crop) tour to see the crops closed between the rows before the longest day.