Weekly Potato Report

April 7, 2010

From the Michigan Potato Industry Commission

Potato Market Update by Bruce Huffaker

As the storage season winds down, more chip plants are using potatoes that normally would be rejected. Even with those supplies, storage potatoes are cleaning up more quickly than usual. The transition to the 2010 crop will be challenging. Limited chip potato harvest will start in central Florida this weekend, but it will be April 17 before volume picks up. Even then, potato size and yields are likely to be below average. Observers expect the last half of the central Florida crop to be close to average. Buyers are hoping to use those potatoes until crops in the Hastings area are ready to harvest.

The Hastings area harvest normally would start around April 20, but observers indicate that very few potatoes will be ready before May 15 this year. Some are concerned that the entire crop may be ready to dig at the same time. That could create logistical and quality issues. As a result, supply conditions may shift from famine to a glut by the beginning of June.

Dealers and growers are still working to finalize 2010 storage contracts. Most storage chip contracts appear to be settling at $0.75 below 2009 prices. A few buyers seem to be holding out for deeper cuts, but most are settling at that level. Michigan and Wisconsin appear to be picking up some contract volume at the expense of other growing areas. Total contract volume appears to be similar to 2009 levels.

In the fresh market, Michigan packers shipped 47,400 cwt of potatoes during the week ending April 3. That is up from 42,100 cwt a year ago. Last week's shipments were 82.9% Russet potatoes, and 17.1% 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 $4.50 per 50# bale, also unchanged for the week. Wisconsin 50-70 count cartons are selling for mostly $6.25-$6.50 per 50# box, unchanged from last week. The weighted average price for Idaho Russet Burbanks advanced to $8.53 per cwt, from $8.43 at the same time last week.

Market News has discontinued reporting Michigan Round White potato prices for the season. 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. In Florida, new-crop Size A Round White potatoes were selling for $18.00 per 50# sack, down from $25.00 at the same time last 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.