The completely random sale of potatoes – the DCA Potato Bingo – has once again achieved excellent results for the 2022 harvest year. The average selling price is only thirty cents below the result of the '18 harvest year. The character of both (growing) seasons is therefore comparable.
More than a year ago nine balls rolled out of the Potato Bingo ball mill, corresponding to a sales period of six weeks. The number on the ball equals one trading day. The closing quotation of the EEX potato futures market is the sales price at that time.
Great price
With an average sales price of €26,04 per 100 kilos, this sales method, which eliminates all emotion, has once again done well. In the recent past, only the 2018/19 season yielded a higher price, of €26,34. In the last three periods of the season, sales prices were at their highest level. It took until New Year's Eve for the market to really get going.
The highest result was achieved in the period weeks 10 to 15: €30,50. The lowest sales price, €19,50, was achieved in weeks 20 to 25. The April contract still has eleven trading days to go and the price of the April contract has shown a recovery since the end of March compared to the beginning of the month. Waiting longer to sell has certainly paid off this season.
Odds lower
The above can also be seen when we compare the bingo result against the other odds: PotatoNL and DCA PAT-Index. If we take the average closing quote over the entire bingo period, the EEX is in the highest position with €25,58 per 100 kilos. This is followed by the DCA PAT Index – the average price of potatoes purchased by Dutch chip factories – at €24,43. The PotatoNL quotation is just below this at €24,05.
Potato Bingo is usually a good indicator of the results of the potato pools. They can probably beat the bingo this season. If the focus of potato sales has shifted more to the second half of the season, this will have positive consequences in terms of price. This flexibility in trading, which Potato Bingo does not have, can work out to the grower's advantage.
Waiting for movement
As mentioned earlier, the current sales season can best be compared with 2018/19. However, the explosiveness and market forces that were visible then are missing this year. Although a price of €26 cannot really be called bad, many potato growers probably hope for more after a growing season, demand and export as shown now. When the April contract has expired, there may be more movement in the futures market.
The bingo balls for the 2023 harvest year will soon be drawn and the sales season will start. The price of the April 2024 contract fluctuates between €23 and €24. This ensures a relatively high price level from which bingo can also start.