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.