European physical markets
Price summary €/t (source: NEPG):
We note a few more transactions than in previous weeks for early potatoes, going to livestock feed (high demand) and to some factories that accept the excess tons. Overall, the offer is more reluctant.
Early Belgian potatoes: 2.00 to 2.50 €/q.
Weighted prices (red and white varieties) at the Roeselare veiling (source: REO via PCA):
EEX in Leipzig (€/q) Bintje, Agria and related var. for processing, 40 mm+, min 60% 50 mm+:
Factories are still not very interested in free volumes and mostly try to remove all the contracted volumes (including some remaining batches of old potatoes). However, one factory seems to be buying some excess tons (at a low price, around 2.00 to 3.00 €/q, for flakes or starch). The offer is reluctant because at those prices, producers prefer to sell for livestock feed where the demand is high. On the fresh markets, the offer is increasing. Export is calm despite the reopening of the Senegalese borders (trade is at the lower end of the price range). Prices at the producer (calibrated packed departure) vary between 10.00 and 15.00 €/q.
Regular factory activity in July (source: NAO). Dutch factories worked 269,600 tons, which is 1,100 tons more than in July 2019. Last year, the activity had been limited by the low offer at the end of the 2018-2019 season, characterized by a shortage of potatoes. The volume worked last July was 1.7% lower than the average of the last 5 years (274,320 tons). Freezer stocks are high, probably because of the general market slowdown due to Covid-19. Global trade has partially resumed since early May, but hasn’t regained the level from before the crisis yet.
Fresh market (early and semi-early): firm flesh: 17.33 €/qt and soft/mealy flesh: 16.08 €/q.
Processing market (early and semi-early, industry): 2.50 €/q.
Organic potatoes: producer prices between 55.00 and 58,00 €/q. The abnormally high temperatures during the 2nd and 3rd week of August slowed down the consumption of organic potatoes, and prices dropped slightly, under 60 €/q, which is lower than last year (between 60 and 65 €/q, for all varieties and qualities (with more weight on the fresh market)).
The west and north of the country received from 20 to 50 mm last week, with even higher peaks at 40 - 100 mm in the East-Midlands and the east of the country. There was a lot less rain in the south-southeast and irrigation is still needed there, also to help uprooting (and reduce costs). On the wholesale markets, the demand is very low and prices are down. High caliber potatoes for fries (for household consumption) are between 8.90 - 13.30 €/q, calibrated and packed. For retail packaging, the firm flesh varieties show some very large, and sometimes problematic, calibers. Prices vary between 26.00 and 31.00 € (for different varieties, calibrated below 45 mm and washable). The superior quality even reached 40.00 €/q. Very little trade from the industry, with prices between 6.70 and 8.90 €/q, calibrated departure for Maris Piper, Sagitta and Accord, with some exceptions at 13.25 - 15.50 €/q. The quality problems are linked to the excess of dry matter (damage, culinary or technological quality), hollow cores, rust stains or mold (for Agria).
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