News Countus Arable Farm Index
Advancing Arable Farming Index not yet over
The upward trend, which the Countus Arable Farming Index has been in since November, has not yet come to an end. In December the price rose by 3,5 points, which is mainly due to the price of the April contract on the futures market.
In the month of July, the arable index up, especially as agricultural markets reacted to the ongoing drought. At the end of September, the markets stabilized before making a new breakout in mid-November. It also continues at the start of the new year.
Index continues to rise
The month of December started with a score of 128,8 points and the year ended with 132,3 points. This means that the Index is now at the level of early 2016. However, it still takes a lot to reach the 150 point mark; that only worked 2 times before. With the start of the new year, the Index has been retroactively recalculated. This one is therefore higher than the previous one reporting.
The literal bottom of the Index is the wheat and sugar beet price. In addition, the price for EU feed wheat rose slightly in December. Due to the lack of current quotations around the holidays, the average is used; which is €214,50 per ton. What also dampens the increase is the sugar beet price. For the 2018 harvest, this has been set at €32,50 per ton of beets.
The onion quotation in Emmeloord has been stable since November 28. The category 30% to 60% coarse onions has a fixed price of €43 per 100 kilos. The price of seed potatoes of the Bintje variety is clearly on the rise; the price will be €65 per 100 kilos for 35 to 45 millimeters at the end of December. However, the influence of this is minimal.
Potato market leading
The sector barometer relies on the potato futures market. The April contract rose again above the level of €30 per 100 kilos at the beginning of December. The year ended at €31,30. At the beginning of January, a significant price increase to above €32 followed, which will cause an increase in the Index for the time being.
What now? Since its inception in 2004, the Arable Farming Index aims to demonstrate the sector's financial position. Those who don't know any better can conclude that arable farmers are having a good year. The current positive trend occurred only 15 times in 5 years. However, the reality is very different. A few can benefit from market prices, but the majority have little or no freely marketable product. It remains to be seen how the course will move as the new season unfolds.
Niels van der Boom
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