Index closes May poorly

The Countus Arable Farming Index started a rapid decline in April. From a peak at 160 points, the Index fell nearly 50 spots. Finally, the month ended at a level of 94.4 points. Not much was left of this in May, due to the completion of the 2016/2017 marketing year.

All products that are included in the Countus Agriculture Index show a very flat price trend during May. This is largely due to the fact that the 2016/2017 marketing year is over. The month of May started with a level of 95.2 points, before falling further and further. At the end of May, the Index stood at 75.1 points.

Influence of Bintje
In addition to chips potatoes, fodder wheat and seed onions, Bintje seed potatoes are also included in the calculation of the Index. In view of the special price development of the DCA Bintje seed potato quotation, and the decreasing acreage, a recalculation has been applied in order to create a more realistic picture. Nevertheless, the decline remains quite large.

In April, the quotation for 34-45 mm (2016 harvest) went from 82,50 euros to 31 euros per 100 kilos (2017 harvest). The price was fixed at that level in May. The acreage has decreased by almost 200 hectares this year. According to the NAK declaration figures the surface will go from more than 1.000, in 2016, to 811 hectares this year. The reduced interest has been included in the calculation of the Index.

Potato forward contract
The other products also show hardly any movement in May. The April forward contract for chips potatoes ends its trading period at 22,10 euros per 100 kilos. The contract for the 2017 harvest fluctuates between 14,70 euros and 15,20 euros. This decrease is detrimental to the Index.

Onion price even lower if possible
The price of yellow seed onions is also not favorable to the Arable Farming Index. At the start of May, the Emmeloord stock exchange quoted at 2 euros per 100 kilos. During the month this became 0,62 euros per 100 kilos, which further deflects the index. The EU feed wheat price cannot help the listing either. Changes in price are a matter of cents, not euros.

Niels van der Boom

Niels van der Boom is a senior market specialist for arable crops at DCA Market Intelligence. He mainly makes analyses and market updates about the potato market. In columns he shares his sharp view on the arable sector and technology.

n.vanderboom@boerenbusiness. Nl

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