The first cash settlement (CS) of the 2024/25 season has been announced by the trade fair organisation EEX in Leipzig. The difference with the last CS of the previous season is enormous. That is nothing more than a fun fact. If we look at the first CS of the previous season, we see similarities. And at least as striking: despite the absence of the PotatoNL, input from the Netherlands was included.
The first CS of the 2024/25 season has been set at €15,20. That is more than €52 lower than what the last CS of the previous season was set at. The first CS was set at €16 last season and is therefore comparable to the current CS of €15,20. Last season, the upward path was quickly followed by very poor harvesting conditions due to persistent precipitation. Before the turn of the year, the CS was already listed at more than €20, then rose from €26,50 in week 4 to above the €35 level in February. From the beginning of May, even larger price steps were made, via €43,10 in week 21 to the end point in week 23 at €52,10.
Lack of Dutch listing
The CS is, as it has been for many years, a mix of listings from Germany, Belgium, France and the Netherlands. Now, the problems with the listings in the Netherlands are well known to most of you. The opinions of the various parties have been discussed endlessly in the various media regarding PotatoNL. The question now is how the stock exchange organisation EEX arrives at the contribution from the Netherlands (€19,20) without a PotatoNL listing?
First of all, it must be stated that EEX has the obligation to come up with a CS a few weeks before the expiration of the first contract (in this case the November contract). The fact that there are no listings in the Netherlands yet, for whatever reason, is ultimately no obstacle for EEX to come up with a CS. As PRA (Price Reporting Agent), they are authorized to meet the obligation, even if a problem arises, such as now from the Dutch contribution.
Then the question of where the EEX gets its price formation from without PotatoNL. That is difficult to answer. No statements are made about that, but given the price level, the price indication of the LNCN and the Goes exchange, which put €15 to €20 on the board last week, is probably also being looked at. Even then, the contribution for the CS from the Netherlands at €19,20 can be called considerable, certainly compared to France (€13,10), Belgium (€13,73) and Germany (€14,95). Nevertheless, given the current mood in the market, a CS of €15,20 seems to be an excellent reflection of the European market for French fries potatoes.