Potato price back at zero

From nothing to zero in one week. Things are not getting any livelier in the potato market. The conditions are not changing. Belgapom is publishing a quotation this week. The price for Fontanes suitable for fries is – just like two weeks ago – set at €0.00. The quotation applies per metric ton, but at this level it no longer matters which unit you use. However you look at it, it is and remains zero. On the other hand, zero in this case is better than nothing. In a sluggish market and at a price of €0.00, at least something is happening. Last week there was no quotation due to a lack of transactions for the largest variety in potato processing. The big problem remains the lack of interest from potato processing. As a result, trade is also left empty-handed. There is also little activity in exports. Hardly any activity in exports Despite the extremely low price level, there is hardly any foreign demand for Dutch potatoes. Due to high transport costs, France and Germany can offer more competitively in Eastern and Southern Europe. Some product still goes overseas, but volumes remain limited. The German Reka Rheinland is still giving a slightly positive signal. The quotation for Fontane remains just above zero at €0.50 per 100 kilo. Agria and Innovator stabilize at €2.50 and €3.00 per 100 kilo respectively. In France, parties emphasize that processors and peeling companies strictly apply quality standards. This leads in some cases to rejections, but agreements are also made on replacement lots. Processors further limit themselves to taking contracted volumes, as is also happening in Belgium and the Netherlands. Lower EPP index Although PotatoNL did not quote in the Netherlands, the futures market organization EEX presents a sharp decline in the Dutch contribution to the European Processing Potato Index (EPP index), also known as the indicative cash settlement price. According to this index, the price in the Netherlands plunged by 65 cents to €1.40 per 100 kilo. This is by far the lowest Dutch contribution since the start of this index in 2009. The Netherlands accounts for a quarter of the index, which is further made up of contributions from Belgium, France and Germany. The contribution from Belgium – the country with the largest fries production – is the lowest at a price of 0.30 per 100 kilo. The contribution from Germany is still the highest this week, with a slight increase the German price comes to €1.88 per 100 kilo. In France the index falls by 16 cents to €1.10 per 100 kilo. The EPP index falls by 20 cents to €1.20 per 100 kilo due to the lower contribution from the Netherlands and France. The index was set up to settle open positions when potato futures contracts expire. However, that is no longer necessary, because potatoes are no longer traded on the futures market. The futures market organization will, however, continue to determine the index. The final one will be set on 4 June. And then the futures market book will close for good.Weekly transaction overviewDCA Transactie app reports this week one transaction for processing potatoes: a lot of Agria's for €5 per 100 kilo. VTA reports three transactions for the processing potato varieties Markies and Agria, ranging from €0 to €4 per 100 kilo. PotatoNL did not quote this week due to King's Day and limited transaction input.