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Analysis Potato market

Potato market has a fixed undertone

29 April 2022

The current potato market has a fixed undertone. This is also apparent from the different quotes and other signals from the market. PCA/Fiwap has actually been reporting for some time that the market can take the next (significant) step up and already showed this on Tuesday April 26 in the publication for Fontane and Challenger (€20 to €22). Belgapom followed suit on Friday by taking a step up from €20 to €22.

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In the other EU-4 countries, the lower end of the market price is also raised to €21/€21,50. REKA quoted € 29 for Fontane and Challenger on Friday 21,50 April. The upper end of the price range is between €23 for the last Innovator with the desired quality (there would also be a transaction of €25) and €25 for chip-suitable Agria and Markies. At the end of week 17, Agria was also reported on the PAT transaction list, for which the processor paid €25 per 100 kg. Agria is in any case a popular variety, for which in a number of cases €30 has already been paid from the grower with an export destination.

The '€25 price level' indicated in previous messages will be there without much doubt. The uncertainty - first because of corona and later the start of the war in Ukraine - has not helped the potato market in recent months. The uncertainty due to the ongoing corona pandemic from spring 2020 dampened the market price developments, especially in the 2021 harvest year. Buyers and growers looked for the security of the contract together, which left little room for the market until recently.

An interesting tail of the season
It has been known for some time that the processors have been able to continue working well in recent months and that the stock of potatoes in the EU-4 countries, especially the free part, is not excessive. Now that buyers have to enter the market more in the last part of the season, this will have a direct effect on the price level. An important element is the hitherto dry and relatively cool spring weather. All in all, a seasonal cake that can give an interesting picture. It's a shame that things got off to such a slow start. After all, many potatoes are settled in April on the basis of, for example, the average of PotatoNL or the cash settlement.

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