The reports that a number of vaccines are on the way to combat the Covid-19 virus provides some optimism, also with regard to the potato market.
After more than nine months of coronavirus, hope is on the horizon. A time has come when a number of vaccines are successful, bringing control of Covid-19 closer. It will be a while before there is a feeling of the pre-virus era again, also in the potato market. But there are signs that markets are recovering. For example, the latest EU trade figures show that September export figures for third countries (outside the EU) were the strongest monthly total since February and plus 22 percent above the same month last year. The Dutch processing figures for October also show the largest output since February. However, the closure of restaurants in large parts of Europe still limits fresh chips processing.
Futures market
At the end of October, the potato futures market for the delivery month of April 2021 fell towards 5.00 euros. Much of the bad news has been incorporated into this forward rate. The futures mood was driven by: a running backlog in cumulative processing figures, no interest among processors in the free potatoes and harvests in NW Europe. In many cases these were adjusted upwards.
These issues have not changed during November, but the prospect of vaccination has brought some optimism back to the market and the forward price rebounded to above 6.00 Euro. Unfortunately, the market activities in the daytime market for the free potato market are still very limited. The EEX Cash-Settlement Index again lost 0.10 euros to arrive at 3.00 euros.
