News DCA Arable Farming Index
Arable Farming Index struggles and emerges
Luctor et emergo is the motto followed by the DCA Arable Farming Index. After a long period in which the income of the arable farmer was under pressure, a bright spot is finally visible at the beginning of August. The Index can even make up for something.
Fueled by a rising onion price and the futures market quote for April 2021, the DCA Arable Farming Index a lot to make up for until the end of May. The low was averted and the Index rose as much as 40 points. It then went downhill again, reaching a low of 73.3 points at the end of July. A drop of almost 22 points.
Comeback
In the closing days of July, the Index made a comeback by rising 1.2 points. This increase was continued in the first week of August. The reason for this is the potato futures market, which rose especially at the beginning of August.
The EU quotation for feed wheat peaked on July 22 (€193,50) before falling again to €189,00 at the end of July. The price of seed onions in Emmeloord announced its latest result in mid-June. This is therefore not included in the calculation of the Index.
Further course
Compared to the 5-year average, the Index is now markedly lower (-12,5%). Normally, the arable barometer is often on the upswing at this stage of the season, often reaching a peak at the end of August. The difference with the average has narrowed in the past 2 weeks. It is quite possible that the Index will follow the multi-year trend, but with a built-in discount. If the virus continues to spread in Europe and the world, product pricing could be turned upside down again. The past is certainly no guarantee for the future.
Incidentally, the current quotation is not the lowest ever. In 2017, the Index was at exactly the same level at the end of July. The difference with 2019 is only 2.5 points. In 2004, the Index was even lower, at 57.8 points.
Niels van der Boom
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