Countus Arable Farm Index
Index bounces off bottom in new year
De Countus Arable Farm Index reached a record low at the end of last year. However, the new year has brought an improvement in the index, as 2018 starts at a higher level. The potato futures market, among other things, has caused a change in the exchange rate.
The index is constantly in flux. The arable farming barometer is based, among other things, on the acreage and yield figures from Statistics Netherlands. If this is changed, the index will be adjusted retroactively. The sugar beet price also has retroactive effect on the Index.
has been adjusted upwards
New result
At the time of measurement (early January) was standing the Arable Farm Index at 51 points. The lowest result since April 2005. However, new figures from Statistics Netherlands and the sugar beet price mean that in the current calculation the last week of December amounts to 60.1 points. That remains the lowest result of 2017, but the 50-point limit has been averted.
slight gain
In the first 5 weeks of 2018, the Arable Farming Index continued to gain a little. January ended with a level of 63.9 points. So far, 2018 is good for a plus of 3.3 points. The somewhat improved situation on the grain market and the change of the April contract on the potato futures market sent the Index upward. However, the current situation remains very bad.
beet price
An important factor for calculating the Index is the sugar beet price. Cosun announced the final price on Wednesday 7 February. Despite the fact that the price of €45,62 is higher, compared to 1 year earlier, the index still falls slightly. This has to do with the fact that the calculation takes the 4-year average in the absence of an up-to-date beet price. It is higher than the current result.
Significant price increases are needed if the Arable Farming Index is to find its way back up. Especially with the heavyweights: ware potatoes and seed onions. Both are in extremely calm waters, as a result of which the arable barometer continues to move at a stable low level.
Niels van der Boom
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