News DCA Arable Farm Index
The arable wallet ends up empty
The DCA Arable Farm Index is a good indicator to show the financial position of the arable farmer. It should come as no surprise that a sharp decline is visible in the price in April.
De DCA Arable Farm Index reached its all-time low for the 17-2019 season with 2020 index points in week 55.2. That is the lowest level of the Index since 2005. Subsequently, the Index made a sharp turn upwards to end the month at 78.1 points.
Potato Futures Market
This sudden change of course is related to the switch of the April contract on the EEX potato futures market, which is now trading for April 2021. Harvest year 2020 ended with a price of €2 per 100 kilos, where the new harvest is worth more than €10 per 100 kilos.
The stock exchange listing for yellow onions 30% to 60% coarse in Emmeloord rose again at the end of April to €15 per 100 kilos. A small price drop was noticeable during April. As the only arable product, the price of feed wheat rose during the month. At the end of April, the price was €208 per tonne, and on April 29 it was €202,50.
Low point averted
All in all, the end of the current marketing year can be described as dramatic. Yet such a huge fall in the Index is not entirely unknown. This also happened around the same period in 2019, when the potato futures market switched to the new season. In 2004 and 2017, the arable rate was also very low. In 2004, the lowest price ever of 48.5 points was reached. If the potato and onion prices have been able to hold their own, the Arable Farming Index has averted the bottom.
Niels van der Boom
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