The carrot trade is running smoothly. The market is flooded with carrots and traders and processors are having trouble finding a destination for it.
We have written about it before, but a combination of larger acreage and good growing conditions does not appear to be particularly favorable for trade and price developments on the carrot market this season. Growers of mid-early carrots who have opted for the stronger varieties can wait a little longer. Carrot varieties that are sensitive to cracking, or that already have a crack or other quality problem, can no longer be sold. Several growers still try to dig up the carrots to keep the plot clean, while others currently choose to use the cutter.
For the price something would have to be done
Provided no calamities occur in the Netherlands or another important growing area, such as a heavy night frost in early autumn or an extremely wet period, several traders do not expect any change in the current mood. When switching to harvesting the storage carrots, the large supply of carrots does not dry up immediately. The capacity of the cold stores is not unlimited and, given the good harvest expectations, insiders expect that some will have to be sold during the harvest.
The DCA Quotation for C-carrot this week amounts to an average of €8 per 100 kilos, which is the same as last week. The bottom of the quotation is €7 per 100 kilos and that seems to be the provisional floor in this landing period. Several traders indicate that we have actually already fallen through the bottom. The current price is below the grower's cost price. The DCA Quotation C-carrot is €7 per 100 kilos. That is €0,50 lower than last week. The top of the quotation has lost €1 and the bottom remains the same at €6 per 100 kilos.