The new market was launched today giving the industry the option to manage price risks. It also means WTB-Hannover, a German exchange, which specialises in agricultural commodities, is widening its range of potato futures.

The exchange offers a futures contract on German table potatoes, which have traded since WTB was set up in 1998, and a second one on continental processing potatoes. But this new contract is specially tailored for the UK market.

'This new futures contract will replace the old UK based physical delivery contract,' explained Hans Christian Koltze, responsible for the WTB-project. 'On our electronic platform we are now offering a new cash-settled hedge instrument which fills the gap efficiently.' Trading of London potato futures will take place in lots of 25 tonnes and trading hours will run from 10am to 4pm mid-European time, or 9am to 3pm UK time. Completion will take place through cash settlement based on the WTB-BPC-Index and physical delivery is ruled out. The index reflects the open market price for processing, packing and other potatoes ex-farm – excluding the cost of bags, and VAT. The index is calculated weekly, based on the widely recognised British Potato Council weekly spot average price.

WTB Hannover is Germany´s first fully computerised commodity exchange and also trades wheat and rapeseed futures.

Further information is available from Hans Christian Koltze on tel: + 49 511 30159 50 or email: koltze@wtb-hannover.de

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