Weekly Potato Report

March 3, 2010

From the Michigan Potato Industry Commission

*Please see the United States Potato Board’s

NEW Potato Nutrition Handbook on the MPIC homepage*

Potato Market Update by Bruce Huffaker

Chip potato markets are relatively quiet, though concerns are mounting about a potential supply shortfall during April and May. Storage potato supplies will start to clean up within six weeks. Shippers who usually run through the first week of June may run out of storage potatoes between May 1 and May 15. The supply situation is most critical in growing areas from Michigan eastward, including Ontario and Quebec, in Canada. However, Wisconsin and the Red River Valley will not be able to replace the losses in eastern growing areas. Wisconsin is running into its own storage problems, though they are not as severe as those in Michigan. Red River Valley shippers are having better luck with holding storages, but indicate that their crop quality is suspect, as well. Neither Wisconsin nor the Red River Valley has more chip potatoes in storage than they did a year ago. The remaining storage supplies in those two areas may be somewhat lower than it was a year ago.

Michigan dealers complain that business has been slow, though Market News data show that the state shipped 844,000 cwt of chip potatoes during February, 11.5% more than were shipped during the same period in 2009. Analysis of chip shipments from all of the growing areas that report monthly potato stock data reveal an 11.8% increase in chipstock movement, over the February 2009 pace.

Storage contracts for the 2010 potato crop are being negotiated. Dealers indicate that they expect to settle most contracts with price reductions of between $0.50-$0.75 per cwt, relative to 2009 contracts. That may include some rollback in grower margins, in addition to adjustments for expected lower production costs for the 2010 crop.

In the fresh market, Michigan packers shipped 84,100 cwt of potatoes during the week ending February 27. That is up from 49,800 cwt a year earlier. This year's shipments were 72.4% Russet potatoes, and 27.1% Round White varieties.

Michigan size A Russets are selling for mostly $1.10-$1.30 per 10# bag, unchanged for the week. In Wisconsin, packers are selling non Size A Russets in 10# bags for mostly $4.25-$4.50 per 50# bale, unchanged for the week. Wisconsin 50-70 count cartons are selling for mostly $6.00 per 50# box, unchanged for the week. The weighted average price for Idaho Russet Burbanks advanced to $7.71 per cwt, from $7.42 at the same time last week. All of the improvement resulted from higher prices for 40-80 count cartons.

Michigan shippers are selling Round White potatoes for mostly $1.10-$1.20 per 10# bag, down from $1.20-$1.30 a week ago. In Maine, 10/5# bales of 2 inch minimum Round White potatoes are selling for $5.50-$6.50 per bale, unchanged for the week.

This weekly newsletter has more complete potato market information. For subscription information call (208) 525-8397, fax (208) 525-8569, write PO Box 135, Shelley ID 83274, or e-mail napmn@napmn.com.

This Weekly Potato Report includes current Michigan grower issues, in depth market news, and other time sensitive information. This report contains market sensitive information and your candor in using this information is appreciated. Your comments and suggestions are vital to improving this report and other services.

If you would like to receive this report either by E-mail or Fax, please call the MPIC office at 517-669-8377, Fax: 517-669-1121, or Email: info@mipotato.com. For the MPIC gateway web page, go to http://mipotato.com. The WPR is updated weekly on Wednesday afternoon.