With the first week of April just around the corner, the potato market is clearly tending more firmly. The real dip that the futures market for the April 2023 contract hinted at by dropping back below the €28 level in February was barely reflected in the physical market.
In recent weeks, the 'price' in the physical market for direct delivery of French fries potatoes has been between €28 and €30, depending on the location (for example Germany or France) for Fontane and comparable varieties up to €31 for Innovator. For later delivery (such as for May) up to €33 was made (for example for Marquis). Especially in the past week (week 12), the general price level of €30 was seen as the lower end, which means that, given the current mood (price holding to firm), the market could now take the next step.
Cover
The first indication of a firmer tender market can be seen in the Belgapom quote on Friday, March 31, which was unchanged at €30 for Fontane and Challenger, but where the sentiment was described as 'fixed'. This is often a signal that the quotation can go to a higher price level the next time. It remains to be seen what step will be taken in terms of price, but given the current June 2023 quotation (closing position Friday, March 31, €32), €31,50 or perhaps a little more is certainly not unthinkable. A grower who has waited for €30 before making an offer will not be so quick to offer a few euros higher if it is not necessary. In addition, the growers will go to the land at some point (drier weather is on the way) to start the new season. Loading potatoes can therefore become a bit more difficult from a labor perspective. In short: the coming period of the retention period may be at a higher price level, which in itself is no more than expected.