POTATO MARKETS Weekly

摘要

Supply pressure of early processing varieties is most acute in Belgium, where prices are struggling to hold a level of EUR 50/tonne. But markets are little better in Germany, the Netherlands and France, and GB processing values could weaken as a result. Packing prices in France and Britain are however substantially higher. The physical market weakness has not triggered any selling of the April 2008 RMX Hanover processingcontract, which closed today at EUR 116/tonne. The effect of any blight and wet weather damage remains a major uncertainty which will only be resolved at harvest time. There is speculation that crops are of older physiological age this year and may not have the same growth potential in the next 4-6 weeks that they did in 2006. Futures traders point out that the open position is 3 100 contracts compared with 2 700 (for the April 2007 contract) at this time last year. Rain could prevent a recovery in Ukraine's potato harvest and wet weather has also affected Danish crops, particularly in North Jutland. South Australian growers will have the option of collective bargaining of their processing contracts in 2008, while PepsiCo has replenished stocks of seedin an Indian statebecause of spoilage as a result of rain delaying planting.