The potato market remains under pressure due to a lack of demand and sales. Belgapom did record prices again this week. Read more about these prices and demand from processors.
Belgapom is publishing a quotation this week. The price for Fontanes suitable for fries has been set at €0,00, just like two weeks ago. The quotation applies per ton, but at this level, it no longer matters which unit you use. No matter how you look at it, it is and remains zero.
| Weekly transaction overview |
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The DCA Transaction app reports one transaction for processing potatoes this week: a batch of Agrias for €5 per 100 kilos. VTA reports three transactions for the processing potato varieties Markies and Agria, ranging from €0 to €4 per 100 kilos. PotatoNL did not record any transactions this week due to King's Day and a low volume of transactions. |
On the other hand, zero is better than nothing in this case. In a sluggish market and at a price of €0,00, at least something is happening. Last week, there was no listing due to a lack of transactions for the largest variety in potato processing.
The major problem remains the lack of interest from the potato processing industry. As a result, the trade is also left empty-handed. There is likewise little activity in exports.
Hardly any activity in exports
Despite the extremely low price level, there is hardly any foreign demand for Dutch potatoes. Due to high transport costs, France and Germany can offer more competitive prices in Eastern and Southern Europe. Some is still being shipped overseas, but volumes remain limited.
The German Reka Rheinland is still giving a slightly positive signal. The quotation for Fontane remains just above zero at €0,50 per 100 kilos. Agria and Innovator stabilize at €2,50 and €3,00 per 100 kilos, respectively.
In France, parties emphasize that processors and peeling companies strictly adhere to quality standards. This leads to rejections in some cases, but agreements are also made regarding replacement batches. Furthermore, processors limit themselves to purchasing contracted volumes, as is also the case in Belgium and the Netherlands.
Lower EPP index
Although PotatoNL is not listed in the Netherlands, the futures market organization EEX reports a sharp decline in the Dutch contribution to the European Processing Potato Index (EPP index), also known as the indicative cash settlement price. According to this index, the price in the Netherlands plummeted by 65 cents to €1,40 per 100 kilos. It is by far the lowest Dutch contribution since the start of this index in 2009.
The Netherlands accounts for a quarter of the index, which also includes contributions from Belgium, France, and Germany. The contribution from Belgium – the country with the largest fries production – is the smallest, at a price of 0,30 per 100 kilos. The contribution from Germany is the highest this week; due to a slight increase, the German price stands at €1,88 per 100 kilos.
In France, the index drops by 16 cents to €1,10 per 100 kilos. The EPP index drops by 20 cents to €1,20 per 100 kilos due to lower contributions from the Netherlands and France. The index was established to settle open positions upon the expiration of potato futures contracts. However, this is no longer necessary, as potatoes are no longer being traded on the futures market. Nevertheless, the futures market organization will continue to determine the index. The final one will be determined on June 4. And then the book on the futures market will close for good.