In recent weeks, the potatoes, especially those of lower quality, have been silently disappearing from the market. After the small dip in mid-November, when Fontane was traded for around €21,50 per 100 kilos from the farmer in the northern and central Netherlands, the current price in the regions mentioned is again €22 rising to €23 in the southern part of the Netherlands . The top of the market is still mainly formed by a variety such as Innovator, of which the supply (apart from the problem batches) is limited and for which prices are still up to €26 per 100 kilos.
The silent decline at the current price level of potatoes of which the quality is not retained is, in principle, good news. Almost all processors are working at full speed and are rapidly consuming the required raw material. It often happens that the market is seen as positive before the end of the year, but it is not uncommon for expectations in January to not be completely fulfilled. Not that the potato market will end up in a dip in January, that is not the expectation, but the silent character with little change in the current price level is not inconceivable in the first weeks of 2023.
Custodial premium
The question is what growers decide given the high storage costs, deliver based on the current price level or wait for a market that will be between, for example, €25 and €30? Today, storage until March, for example, is only moderately rewarded with a bid of €24 per 100 kilos ex-farm for Fontane. If this trend continues in the first weeks of 2023, it will be difficult for a market to switch up in terms of price formation, which will then trigger supply again. In short, there are always various factors that determine the price. This season, however, an important addition has been made and that is the storage costs. The idea may be why act as a buyer if the potatoes will come anyway. In that sense, the movement will have to come from the parties that can hardly help but find themselves in a tight position due to a disappointing potato harvest (Belgium, France). It remains to be seen when that will be the case.