Weekly Potato Report

From the Michigan Potato Industry Commission

May 5, 2010

Potato Market Update by Bruce Huffaker

Chip potato supplies could be tight for another week. Storage supplies have cleaned up rapidly. Most chip companies are relying on new-crop potatoes from Florida and Texas to cover their production needs. They are trying to hold growers to contracts where possible. However, growers have been able to pick up $20.00 per cwt on some open sales. Harvest will be winding down in central Florida this weekend. Hastings growers would like more time, but several are shipping this week. More will be going next week. First potatoes have a small size profile, and yields are below normal. Growers are hoping for better yields on the last 60% of the crop.

Canadian chip plants will start using US potatoes later this month. That will add to the demand for new-crop potatoes. There is some potential for supplies to outstrip demand in the coming weeks, as the harvest is compressed. However, the industry will need to replace potatoes storage potatoes that either went out of condition or were used ahead of schedule, as well as supplying normal needs, and the needs of Canadian chip plants.

Planting is running ahead of schedule in most growing areas east of the Rocky Mountains. Michigan growers are holding back on planting, in an effort to space out crop maturity. We are not sure that growers in several other areas have the experience of needing to slow down planters, in order to control maturity. Our sources indicate that more than 65% of Ontario's 2010 crop already is in the ground.

In the fresh market, Michigan packers shipped 28,700 cwt of potatoes during the week ending May 1. That is up from 23,600 cwt a year ago. Last week's shipments were 89.9% Russet potatoes, and 10.1% Round White varieties.

Michigan size A Russets are selling for mostly $1.10-$1.30 per 10# bag, unchanged from April 17. In Wisconsin, packers are selling non Size A Russets in 10# bags for mostly $4.50 per 50# bale, also unchanged. Wisconsin 50-70 count cartons are selling for mostly $8.00 per 50# box, up from $6.75-$7.00 two weeks ago. The weighted average price for Idaho Russet Burbanks advanced to $10.09 per cwt, from $9.10 two weeks ago.

Florida new-crop Size A Round White potatoes were selling for $14.00-$15.00 per 50# sack, down from $15.00-$16.00 at the same time two weeks ago.

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