The physical trade in potatoes is not very busy. Processors can still move forward reasonably well with contract volumes. The undertone in the market is becoming somewhat firm when we look at the DCA Spot Price for French Fries Potatoes (DCA SF).
The DCA Spot Price for French Fries Potatoes is basically the average of the French fries potato prices from the exchanges in Germany (Reka), Belgium (Viaverde/Fiwap), and France (RNM). Normally, PotatoNL is also included, but this Dutch price has not been displayed on the boards since the start of the new marketing season.
The price difference between Fontane and Innovator remains significant. The top of Innovator is at €20 while Fontane remains at €12.50 when looking at the various prices in the EU-4. In Belgium, the sentiment for Fontane is shifting a bit. Viaverda/Fiwap hinted this week by setting €12.50 to €15 on the board for Fontane and Challenger. Viaverda noted that there are few transactions and limited demand from the industry. Over tons and problem batches make up the majority of the market. Traders and in some cases also growers are in the market for good potatoes at the current price level. These potatoes are being bought for storage.
The hint from Viaverda/Fiwap was not followed by the other price reporters. Perhaps most remarkable was Belgapom, which kept the price unchanged at €12.50 but changed the market sentiment to stable. The DCA SF took a step up this week and increased by €0.18 to €14.20 per 100 kilos. This puts the spot price €0.92 above the five-year average and even €2.76 above last year's price. Despite the expansion of acreage and a reasonably good harvest on average, the market feels quite firm in this respect.