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Analysis Potatoes

Spring in the air does something to the potato market

8 March 2024

From the road it may seem like a lot, but in general it is still special in the northwest European fields. Traditionally, when the days lengthen, the weather improves and the longer-term forecasts seem good, the arable farmer gets an itch and the potato market can respond accordingly.

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Over the past period, the potato market has risen rapidly from just above the €20 level (cash settlement) around the turn of the year to more than €36 currently at the beginning of March. The question is whether the market can maintain this pace of price increase. This would mean that the average price of French fries potatoes would rise towards the €50 level by mid-May. The fact is, however, that further increasing the price will not make more potatoes available. This may happen (temporarily) if the market stabilizes somewhat or if you have to take a step back. It is a fact that the potato market is stabilizing if you look at the various European quotations. In the Belgapom quotation of Friday, March 8, the mood was described as stable (supply equals demand, equilibrium).

The weather is the deciding factor
Whether the potato market can also take a step back remains to be seen, but given the price movements in recent weeks, it would not be that unusual. The longer-term weather pattern definitely plays a role in this. If there is really nice dry and sunny weather on the horizon, most arable farmers will no longer be able to keep up and a somewhat negative effect on the market price is not unthinkable. On the other hand, nothing is as changeable as the weather. An early spring (which is difficult anyway) can easily be delayed and then the tension in the market for the 2023 harvest will immediately increase.

In other words: do we think that there is or is not a gap between the old and new harvest? In short, it seems like taking a moment to look at what spring will do and what effect it will have on the mood in the coming weeks. One thing is certain, the storage season is only just over half way.

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