Potato contracts for difference (CFDs), which track the benchmark market for the commodity, have seen prices soar roughly 705% in less than a month.
Since 21 April, the cost per hundred kilograms has risen from approximately €2.11 to a staggering €18.50.
However, this price is in fact still very low compared to where the potato market was in the last two years. This is due to the underlying physical market in Europe currently suffering from a major oversupply.
After shortages and strong prices in previous seasons, farmers in countries including Belgium, Netherlands, France and Germany expanded planting areas significantly.
Favorable weather conditions then produced exceptionally large harvests, creating a substantial surplus across the European market. As a result, processors and exporters have struggled to absorb the supply, pushing farmgate prices sharply downward.
