News Countus Arable Farm Index
Arable income turns 180 degrees in May
The Countus arable index is drawing from a completely different barrel for the month of May. After reaching 1 of the highs, the Index has corrected sharply in the past month. This is mainly due to the potato futures market.
Anyone who still has free potatoes or onions for sale in this last phase of the sales season can probably achieve a good balance. At many entrepreneurs, however, the sheds are empty, which is often much earlier than usual.
Consequences for the potato futures market
The expiration of the April 2019 contract on the EEX potato futures market has caused the Arable Farming Index to suddenly show a different picture. In week 17, for example, one of the highest figures in the 2019/2020 season was achieved (133,5 points), where that is only 1 points 106,2 week later. It is not uncommon for such a correction to be made in May.
However, 1 year earlier, just the opposite was true. Then the Arable Farming Index went from a very low level and jumped 17 points between weeks 18 and 28. It's making that move now too, but the other way around. This has everything to do with the April contract. The April 2018 contract closed at €5,60, while the April 2019 contract opened at €15,50.
The April contract achieved a closing price of €2 per 16,80 kilos twice. In the meantime, there was sometimes a small dip, which caused the Index to drop slightly again. The EU feed wheat price is still very stable and ended the month slightly higher: €100 per 19,65 kilos.
End of onion listing 2018
The regional fair in Emmeloord last recorded a price for yellow onions of 15% to 30% coarse (harvest 60) on 2018 May. This amounted to € 62,50 per 100 kilos. The Arable Farm Index uses this price level in the absence of a new listing. The onion price was thus able to increase by almost 10% during May.
The Index is now in a transition phase between 2 seasons. This year is special, because of the high price level and the small harvest. The provisional acreage figures will be announced later this month, so that the Index better reflects the reality of the 2019/2020 season.
Niels van der Boom
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