Last week's potato prices may give the impression that the physical potato market has entered a more stable phase. Is that true?
With the start of a new trading week (week 14), the dark clouds seem to be gathering above the market again. The ingredients in the market are clear: an early spring, relatively high potato stocks in Europe, stagnating sales markets for the pre-fried segment and a French fry price that has come under further pressure. The quieter export also does not provide a good alternative.
Hardly any transactions
Furthermore, there are rumours from the market that processors are ignoring the share of free potatoes when loading the contract potatoes. They are not interested in these potential co-delivered potatoes and leave the grower with the remainder. And this while the majority of growers would like to do business for prices that are equal to the current quotations. The quotation is now fed by a limited number of transactions of co-delivered kilos. Real transactions are a rarity.
The rising temperatures also ensure that growers want to switch without mechanical cooling. Even with an offer below the quotation (there is a supply of Fontane at €15 without a bid) does not generate buying interest. Without a revival of demand, the pressure on the price will increase. In Belgium, the quotations already give the first signal for this. Viaverda/Fiwap values Fontane down from €17,50 to an average of €16,75. Viaverda also indicated that the market mood is calm with few transactions, because there are few buyers on the market. The quotation of the French Fontane (RNM) also fell this week by an average of €0,75 to €16,00 to €17,50