The Belgian potato processing industry has set the tone for the Northwest European potato market at the start of the year after a number of Belgian factories unexpectedly purchased the product at a 5 euro base, according to a report by es.potatoes.news via FreshPlaza.
As a result, it is said that the prices of the Belgian and French stock exchanges experienced an increase of more than 100% compared to the end of 2020. For example, Belgapom registered that all varieties stood at 5 euro (+3 euro) on Friday.
This shock has given new impetus to a market that did not expect a price rebound due to the coronavirus crisis. It also pushed the early market to be delivered in April to the level of 8 euro. Thus, the expected value of the futures market oscillates around 3 euro.
The market will closely follow the surprising development of the physical market. The question is whether this increase will help processors secure the potato volumes they require or if futures market participants are interested in raising prices.