Countus Arable Farm Index
Index is heading for record low
The month of December did not bode well for the Countus Arable Farm Index. In November, the index already reached its lowest point in 10 years. After the limit of 60 points, the level of 50 points has now almost fallen. Low prices push the figure further down. Which crop can reverse this?
The Countus arable index is on its way to a new record low. At the current pace, that's not far off. The year 2017 ended with an index figure of 51. That is the worst result since April 2005, when the index was even lower, with a quotation of 44.2 points.
Press prices
In the last 4 weeks of the year, the index fell from 58.3 to 51 points. This puts it just 6.8 points away from the low. The Arable Farming Index is formed by the price formation of the potato futures market, onions, wheat and seed potatoes. The first 3 products were all under pressure in December, which is not doing the index any good. The seed potato price remained stable, but due to its limited influence, it cannot improve the result.
The April contract of the EEX potato futures market moved around €4,80 per 100 kilos in December, before falling to €4,60 in the closing week. The price of feed wheat is also declining. In week 49, a price of €162,50 per tonne was made, and then something had to be sacrificed. The year ended stable at €161 per tonne.
Physical Market
However, most chips potatoes are grown under contract or in a pool. A low quotation of the April contract therefore does not immediately mean that the wallet will be hit. It should be noted, however, that good product quality is required in order to avoid discounts or rejections.
Hope for onions
Fortunately, onions are showing a counter-movement, but are unable to turn the index tide. The average stock exchange quotation has found its way up and comes from €6,38 per 100 kilos to €7,00 per 100 kilos. Only this crop still contains music that can make the Arable Farm Index take a different path.
Niels van der Boom
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