Weekly Potato Report
March 19, 2008
Michigan
dealers continue to sell open chip potatoes for $9.50 per cwt. Contract
movement is strong, but some Snowdens are starting to
go off color. Virtually all of this year's remaining potatoes are under
contract. Dealers indicate that at the current shipping pace, the remaining
contract potatoes could clean up earlier than usual.
Central
Florida growers will start shipping the 2008 crop by March 30. Some potatoes
may be ready earlier, but buyers are holding back, in order to finish using
committed storage potatoes. The Florida crop appears to be in good condition.
Wet weather is delaying planting in Missouri and other early Midwestern growing
areas. Cape Girardeau has received over 11 inches of rain in the past two days.
USDA
reports that the US had 171.8 million cwt of potatoes in storage on March 1. If
that is correct, potato inventories exceed year-earlier holdings by 12.1 million
cwt, or 7.6%. However, the extra stocks are supposed to be in the Pacific
Northwest. No one in the industry is convinced that the extra potatoes exist.
In addition, markets are behaving as if supplies are in balance with demand, at
best. Table potato markets are acting as if that sector may be facing a
shortage, in the coming months.
USDA
says that Michigan had 4.6 million cwt of potatoes in storage on March 1. That
exceeds reported 2007 holdings by 1.3 million cwt, or 39.4%. If those numbers
are correct, the potato industry is handling the extra potatoes exceptionally
well. Open chip potato sales are close to the contract price, with a limited
volume of sales. Michigan fresh potato prices have been moving up in recent
weeks. Our sources believe that Michigan potato stocks are larger than they
were a year ago, but suggest that this year's quality is much better. However,
they doubt that the difference between inventories is much less than the 39%
increase being reported by USDA.
In
the fresh market, Michigan shippers are selling storage Round White potatoes
for $1.25-$1.60 per 10# bag, unchanged from last week. Remaining supplies of
Round White potatoes are in very few hands. Maine growers are selling 2 inch
minimum Round Whites for mostly $1.10-$1.20 per 10 # bag, unchanged for the
week. Florida packers are selling 2008-crop size A Round
White potatoes for mostly $22.05 per 50# carton, also unchanged for the
week.
Size
A Michigan Russets are selling for mostly $1.50-$1.60
per 10# bag, unchanged from last week. Wisconsin shippers are receiving mostly
$6.50-$7.00 per 50# bale for non Size A Russet
potatoes, unchanged from last week. Wisconsin prices for 60-70 count cartons
are $10.00-$11.00 per box, also unchanged for the week. The weighted average
shipping point price for Idaho Russet Burbanks held
steady, at $14.19 per cwt this week.
Michigan
shipped 65,000 cwt of fresh potatoes for the week ending March 15, of which
66.2% were Russets, with most of the rest being Round Whites.
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