The potato market has become adrift. Especially for chips and fresh potato prices in the EU-4 countries have risen explosively in recent weeks to price levels that almost seem unreal. That stands like a pole above water. On the other side of the channel (England), the market has developed even more frantically.
Converted into euros, prices for Agria and Markies for fresh chip market destination are €80 per 100 kilos, rising to almost €100! This has never been seen before in his more than thirty years of working life in the trade, says a trader. The fact that this important information from England when it comes to the potato market virtually passes the view of interested parties in the EU-4 countries is the result of the disappearance of market price information such as from AHDB Potatoes (Potato Council). The organization of this market information announced a number of years ago that it would stop as a result of a financing issue. Quite bizarre, because how must an English grower feel who had excellent storage potatoes but sold them two months ago for much less money. The question is on what information he did that; the position of the sun and stars or something?
Gauge
In any case, interpreting the potato market in the EU-4 countries is a lot better with, for example, the German REKA, the Dutch PotatoNL and the Belgian (PCA/Fiwap/Belagpom) quotations. Another strong indicator of price development, especially before the storage season, is the futures market. However, this is in a kind of pause mode due to the vicissitudes that exist when it comes to the parties that take care of the financial settlement. However, according to DCA Finance, this should change by mid-June. In the meantime, the April 2024 contract will only be quoted, €27,50 bid/€40 ask, and no trading/sales will be made. A price indication that you basically can't do anything with!
The physical market in the EU-4 countries has made a giant step over the past week from €40 to €45 to today (Friday, May 26) an average of almost €50 per 100 kilos. The quotation of the June 2023 futures contract that expires next week (22) even reached €52. Even higher prices are charged for varieties such as Agria with destinations other than (frozen) chip processing, up to (as far as known) €58,50 for Agria to be delivered from box storage with mechanical cooling before June 15, up to €62,50 if delivered before 15 July. In any case, it remains exciting now that spring is really late and the emergence of the new potatoes is not going well everywhere.