The potato market is in full swing for the summer. This applies to both the old and almost naturally also the new harvest.
To start with the old crop of potatoes. This week was up Boerenbusiness already indicate a turnaround in the market. At the beginning of the week, purchases were still made at €12,50 per 100 kilos, mainly for Fontane, but within less than 48 hours the market price rose from €15 to €17,50 to even €20 per 100 kilos on Friday morning. Apparently, action had to be taken quickly now that, due to the persistent drought, the early potatoes have set back somewhat.
The harvest of the early potatoes is certainly not bad, judging by the test harvesting results of PCA/Fiwap this week from Amora and Sinora, but that last bit of extra kilograms will not be available. While calculating, eyes were again focused on the potatoes of the old harvest, resulting in a price jump. It is known that a market can make strange leaps, especially during the summer period, but the market movements of the past 6 weeks have caused some frustration among growers with free potatoes. From €25 at the end of May to even €10 at the end of last week to the current weather of €20. A potato market that you can hardly call a market anymore, because the factor 'more luck than wisdom' has come to play far too dominant a role.
Market forces
Perhaps it is better to secure as many potatoes as possible with buyers, and this also applies to the price. However, who can predict how the cost price of cultivation will develop in this current uncertain world? In other words, the question is whether fixing everything on price offers a lot of certainty, but without healthy market forces, growers will be pushed in that direction!
The summer weather has also created a mood on the futures market for the upcoming harvest, settlement in April 2023. Recently, trading was at €19. On Friday, July 15, the market closed at €22,50. The opportunities to sell at a higher price level, higher than the average contract price, therefore currently exist. Many growers are currently taking advantage of the positive movement of the futures market.
The frequently asked question is whether the futures market can rise even further, can only be answered with 'yes', but then a somewhat longer dry period is required. Until recently, the potatoes of the main harvest have been able to grow well and with sufficient rainfall around the turn of the month (July/August), for example, the crops pick up quickly, which immediately affects the mood.