News Countus Arable Farm Index
More positive sound on arable markets
Once again, the Countus Arable Farm Index shows a more positive scenario in the price formation of arable products. After a brief peak, and the subsequent decline, it manages to bounce back above the 80-point level. The potato market contributes to the arable income.
During the month of September, the Countus Arable Farm Index show a steady to rising trend. In the first week of September, a quotation of 74,7 points was set, compared to almost 80 points at the end of the month. This limit was also broken towards the start of October.
Rising futures market
The reason for the increase in the arable barometer comes mainly from the potato market. At the end of the month, the potato futures market in Leipzig again recorded a price level above €15 per 100 kilos. This was also the case in mid-September (between 13 and 19 September).
In mid-September, the onion quotation also fell back a bit. The price level in Emmeloord dropped from €9,25 to €8,50 per 100 kilos. However, this decrease is countered by the increased potato price. Due to the wet weather, not all onions have left the country yet. In Flevoland, 10% to 15% still needs to be harvested or recharged, and further north this rises to 50%. In Limburg too, many onions still have to go into or out of the barn. However, the current price level does create a lot of demand in the market, which means that a lot of volume is exported.
Wheat price steadily rising
The feed wheat price has used the month of September to gradually gain something in price. During the month, €10 per 100 kilos was added. The current price level of €179,50 is expected to match the supply and demand situation. Europe is also competitive on the international wheat market, which is supporting the market. Price formation is aided by a low euro-dollar exchange rate.
The potato market is especially sensitive to precipitation. At the beginning of October, it will remain unsettled, but it seems that there will be an improvement after that. Temperatures are also rising, as night frost is now making the harvesting work more difficult. In Central Europe, the mercury drops to -3 degrees at night and early in the morning. The main ware potato crop has only just started, so the weather could have a major impact.
Niels van der Boom
© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.