The potato market is barely moving. And that seems a bit strange, especially if you compare it with, for example, an onion or grain market where there is plenty of activity and mood. Although the cards on the potato market have not been shaken unfavorably for the free grower, it is important to pay attention to how to take maximum advantage of this.
Prices on the physical potato market are stable or are even under some pressure. Belgapom quoted today (Friday 28 August) €25 per 100 kilos, the PotatoNL quoted Monday from €20 to €27 and on the PAT list the contribution this week is between €25 and €26,50. The quote on the futures market just ripples along without really getting rid of the €28 per 100 kilos. These are decent prices, certainly compared to recent years, but again not spectacular.
If you only look at the prices you would almost forget that we are in an extremely dry season. PCA presented the trial harvesting figures for Fontane and Challenger in Flanders yesterday. The yields have now fallen significantly below the long-term average (Fontane is even on track for the lowest yield ever), the sorting is relatively fine and the growth has stopped. PCA does mention that there are large differences between the plots. In the south of the Netherlands the situation will not differ much from Flanders, but in the north the potatoes are generally better. But here, too, the yield will certainly not break records. And yet potato prices are not making a step up.
Risk spreading
This is partly due to the lack of an expectation value later in the season. A free grower also looks for some footing in the market. Until now, part of that security came from the futures market, either through self-trading or through click contracts. It is an option to cover part of the potatoes in advance. You cover part of the futures market and thus spread the risk that you run over the potatoes in storage. At the moment, however, there is hardly any expected value in the futures market. The traditional buyers (factories and brokers) seem to find a price just under €30 best and are therefore only active to a limited extent. For the grower, this means that he can no longer cover the risk with regard to the potatoes that he would like to keep for a long time.
The past season is still fresh in everyone's minds and it turned out that the market can make strange leaps. Of course it could also go the other way this season with a jump up. As a grower, you have to have the resources and the confidence to take that gamble. Instinctively, there is therefore more interest in early delivery. The prices are decent and provided there are decent barrels under them, they are more than cost-effective for most growers. Then why wait and not sell some extra ex-country? An additional and not to be underestimated advantage of early delivery is that the potatoes are also paid for early. With expensive fertilizer, crop protection, energy and other cost items, the money quickly in the bank is also worth a lot. Then you should be able to harvest the potatoes. Most growers are aware of through washing, but the high underwater weights also make the potatoes very sensitive to blue. Especially if there is no rain, it can be a challenge to get the potatoes off the land neatly and without damage.