The downgrade of PotatoNL's category 1 listing has resulted in the cash settlement price on the potato futures market dropping to €2,40 per 100 kilos this week. A slightly higher price in Germany also failed to prevent this.
These remain low prices that contribute to the cash settlement compiled by the organization behind the potato futures market. It is striking, however, that Germany is now making a higher contribution than the Netherlands. Due to the lower listing for category 1 (processing potatoes for the industry in Northwest Europe) by PotatoNL, the Dutch contribution to the cash settlement has dropped to €3,05 per kilo. Germany has recorded a minimal increase of 8 cents, reaching €3,25 per 100 kilos, but still has the highest contribution.
France and Belgium continue to record the lowest prices in Northwest Europe. The French RNM does not report a price. In an explanation, the price committee does state that if trade is conducted, it will be at €1,50 per 100 kilos for most varieties. In addition, a few lots of innovator varieties were traded for €3 per 100 kilos.
EEX calculates France's average contribution to the cash settlement at €1,80 per 100 kilos. Belgium lags behind, with an average price of €1,68 per 100 kilos. This is the lowest price since May 2020. Due to COVID-19 restrictions, Belgium's price in April and May 2020 was only just above €1 per 100 kilos. During that period, the cash settlement dropped to between €1,70 and €1,90 per 100 kilos. This week's price is still above that, at €2,40 per 100 kilos.
Next week unchanged
The outlook for the settlement price for next week doesn't look any better. Belgapom's price remained unchanged on Friday, November 21st, meaning there will be no improvement in the settlement price from Belgium for the time being. Viaverda and Fiwap are still trading on Tuesday, but the price update for last week's price range of €1 to €1,50 offers little hope for a quick improvement. "There are few transactions. Traded volumes are limited to overtons, insofar as processors are interested. Exports are becoming more difficult due to competition."
Reka-Rheinland is also not adjusting the price level of Fontane, Innovator, and Agria this week. This suggests cash settlement next week will be on track for the same level. PotatoNL is having a very hard time establishing a price for Category 1, as very few deals are being finalized. Therefore, no change is expected from that quarter either.