U.K. POTATO FUTURES TRADING NOT TO BE SUSPENDED
  Trading on the London potato futures
  market will not be suspended, Richard Harris, Chairman of the
  London Potato Futures Association (LPFA), said in a statement
  to floor members.
      It was in response to strong representations by the Potato
  Marketing Board (PMB) complaining of a gross distortion of
  price which they say will result in large deliveries into the
  physical market when the April futures position expires.
      The PMB had sought an immediate suspension in futures
  trading and asked the LPFA to take action to restore the
  relationship between futures and physicals.
      Farmers and merchants have alleged a squeeze and cornering
  of the market but Harris pointed out that recent investigations
  by the Association of Futures Brokers and Dealers (AFBD), the
  International Commodities Clearing House (ICCH) and other
  parties, found no evidence to substantiate this.
      The main complaint from some sections of the physical
  market is what they say is an unrealistic futures premium over
  the PMB's average ex-farm price. April futures traded this
  morning between 168 and 170 stg per tonne compared with PMB's
  average price of 104 stg.
      Bill Englebright, joint secretary of the LPFA said there is
  a two-tier market for physical potatoes. He said quality
  potatoes are in short supply and prepackers have been paying
  between 145 and 165 stg per tonne for best samples. But lesser
  quality grades have traded below 100 stg.
      Some merchants fear that a large tonnage will be delivered
  against the April futures contract between now and the end of
  the month, and possibly disrupt the physical market.
      Harris said the LPFA rule book allows the management
  committee to take steps as necessary to correct any malpractice
  and he assured the committee is monitoring the situation.
  

