As was more or less noted last week, the price of French fries potatoes is currently making great strides. Not being able to list Belgapom was already a signal. The trade and the processors who contributed in order to compile the quotation apparently did not agree with each other.
The PCA/Fiwap quotation on Tuesday, January 16, was more than clear about where the price level should be and increased by €5 per 100 kilos to €25. Belgapom, which was considered important by all European market parties, could not be left behind the following Friday (January 19) and also recorded €25 per 100 kilos ahead of Fontane and Challenger with a 'fixed' vote. It is currently striking that the German REKA listing is taking the initiative when it comes to higher listings. In other years, the German listing tends to be more trend-following. Just like in Belgium, Fontane and Challenger, but also for Agria, are quoted at €25 per 100 kilos. For Innovator this is already €28, which means that the next step will already add €30.
Leaders and followers
In the Netherlands, market prices are also rising rapidly, as evidenced by the PotatoNL quotation last Monday, January 15. Based on how the listing is now achieved, it remains a difficult story. The entry into the PAT list should provide more clarity, as that overview contains almost all transactions involving potatoes traded by processors. For week 3, a total of 1.125 tonnes was placed on the PAT overview, divided over three transactions (100 tonnes of Arsenal for €21, 300 tonnes of Ivory Russet for €23,55 and another 725 tonnes of Ivory Russet for €24). Or many more transactions will have to be reported next Monday, otherwise recording will become more like following what is happening in the surrounding countries.
The fact is that the potato market has found its way up earlier than was generally assumed. After all, there would still be a supply of potatoes from the field (that may now be forgotten due to the frost) and the supply of potatoes that are difficult to store would continue to cause pressure. A tour of the various growers indeed shows that people have been (and still are) busy delivering potatoes that have to go at short notice, but that this is happening very quickly. If we look at the time of year - it is not even February - and the next price step up has already been made, then, as mentioned earlier, €30 quickly becomes apparent. What happens next in terms of price development and still quite a few months to go until the end of the season can be described in one word: 'exciting'.