10.
08.19
Rain in northern Europe changes the harvest prospects

Kartoffeln Cockpit, 10.08.2019

  • Demand from Eastern Europe is increasing
  • Romania, the UK, Belgium and Germany are major suppliers to Poland
  • Potato harvest in Belgium accelerates due to heavy rainfall
  • The harvest in the Netherlands is also favored by rain
  • Increased hedging on EEX put pressure on quotations

The Belgian FIWAP reports that the potato harvest has noticeably accelerated there after the rain. The supply has increased, which also depresses the prices. Today, the Belgapom quoted the early Frittenrohstoff with 12.5 € / dt and thus 2.5 € / dt less than in the previous week. The raw material for frits remains without impetus in the Belgian market. The weaker prices limit the supply. But the demand from the factories is limited to contract potatoes. The demand for exports to Eastern Europe has increased and will probably continue to increase in the coming weeks and months. Because in Poland threatened with potatoes a crop failure. In the spring there could be planted late, according to late potatoes ran to the main crop. Most recently, field crops suffered from drought and heat. Trade in Poland is already adjusting and imports more potatoes than usual in the summer. The acreage in Poland comes to around 300,000 hectares this year, slightly more than in the previous year. The harvest will certainly be much smaller than before. In most parts of the country it was too dry and too hot at the beginning, irrigation there is only about 5% of the area in potato cultivation.The first crop estimates come to just 6.5 million tonnes. This is even less than in the relatively bad year of 2018 when 7.5 million tons came together. In addition, one gets to do with quality problem. The stocks of the main crop are already ripening and the tubers are far too small. Now that rain showers stimulate growth again, it comes to dreaded volunteers. It is also reported by late blight. Since the Polish market with potatoes is now deficiently undersupplied, an extraordinary amount is imported. The supplier countries are Great Britain and Romania, soon also Belgium and partly also West Germany. Potatoes from Poland are likely to turn out to be buyers from the Czech Republic this year. This increases export opportunities for German exporters. In this country, the result of the land use survey was announced this week. According to this, the potato cultivation area should have increased by 8.7%. Potatoes are now to grow on 276,300 hectares. The surface area for North Rhine-Westphalia with a plus of 7,800 hectares is not shared by market participants. Nevertheless, the potato supply from Germany will allow more exports again this year. The way to Eastern Europe is therefore open to them.In Holland, the mood on the potato market has turned completely this week. The weather has been playing well for a week and a changeable weather in August has always provided good returns. Many farmers have recently sold their harvest to their contractors in the industry. Those who did not play the game secured themselves against falling prices on the futures exchange. This should have caused the price decline at the Leipzig futures exchange. The high food potato prices can not hold now either. The REKA Rheinland writes today that it will now be a challenge to find a potato price that everyone can live with. Nobody knows what the main harvest brings us. However, at the still high price level, no trader will start bunkering potatoes for winter storage. Now that the Benelux area is supplied with potatoes from France, and also with us all regions can provide themselves with potatoes from the immediate vicinity, we are now only entering a market phase, in which it is a little quieter. The REKA therefore advises its members to consistently use export opportunities as well

Rain in northern Europe changes the harvest prospects
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ZMP Live Expert Opinion

At the beginning of last week, stock market prices for processed potatoes fell to € 12.5 / dt on the April 2020 settlement date. In many growing regions it had finally rained, but some parts hardly got anything. So it is still too dry in parts of northern Germany. The price on the futures exchange was repeatedly supported by buying interest of 13-13,8 € / dt. The yield potential in the dry regions was severely limited during the very hot days two weeks ago. Proverods in Belgium expect higher yields than in the previous year, the potato herb is on average of all varieties very mature and tired.

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