Large excesses are not spent on the potato market. Something sweet is happening on the market. Processors are going full steam ahead and the supply of potatoes is certainly limited in Belgium and France. But it all goes at its own pace, so that the line does not break.
The Belgian potato processing industry will have processed 2022 million tons of potatoes in 6,2. That is no less than 18% more than in the previous record year 2019. The Dutch processors are not much inferior to their Belgian colleagues and have already set several monthly records last season. It seems that there is no shortage of demand on the potato market.
Several growers are also looking at early potatoes. Planting is not going very well yet due to the wet spring so far. But it is not yet May and better weather is forecast for next week. There is actually little meaningful to say about yields from early potatoes. With spring work - which has been postponed by a few weeks for most arable farmers - approaching, it may become more difficult for processors to get their hands on potatoes. Let's face it, it's more fun to go into the field after a long winter than to deliver potatoes.
Press the boiler
Back to the current market, it is striking that the PotatoNL has taken a step up across almost the entire board at the beginning of this week. The Belgapom made a bigger step and went from €30 to €32,50 for Fontane and Challenger and recorded the vote. For Marquis the observation went to €33,50, also with a fixed vote. The futures market has also found its way up. What may have a dampening effect in the background is that some of the potatoes will be paid for in one way or another when the April contract is settled. The cash settlement increased by €0,40 this week to €30,70 per 100 kilos.
This further increases the tension in the market. Processors can put the potatoes to good use. By increasing the price, no additional potatoes will be added. But growers with free potatoes are not yet very enthusiastic about making offers for the current prices, it seems. In that respect, growers need encouragement to open the barn doors. What will certainly also play a role is that processors do not want their competitors to make off with the loot. All in all, a cocktail in which the potato market seems to be preparing for the next step up.
This is actually already happening on the physical market and higher prices are being paid than the quotes and futures market suggest. For example, the DCA Transaction App today shows a transaction of €35 for May/June, but also a transaction for Agria of €40 made in March. That may also reveal the problem facing the potato market. Buyers open their bag of tricks to keep high prices off the quotations for as long as possible. Growers can easily avoid this with the Transaction App or the VTA list, but whether or not at the insistence of the trader/buyer, this option is not always used.