Weekly Potato Report

From the Michigan Potato Industry Commission

May 26, 2010

Potato Market Update by Bruce Huffaker

Potato chip demand remains strong. Chip plants were running round the clock in the run up to Memorial Day. Nevertheless, raw product supplies are adequate to cover all of the current demand. Finding trucks to move the potatoes seems to be the biggest challenge facing the industry.

There is a wide range of opinion on the crop transition between Florida and Missouri and North Carolina. Some observers believe that Florida supplies will clean up early, creating another shortfall in about 10 days. Some growers are hoping that they will be able to sell open potatoes for up to $15.00 per cwt, during that gap. Others believe that the chip industry is fully covered, and that there will be no market for open potatoes, at any price. Florida growers still have a lot of potatoes to dig, because the Hastings area harvest got under way two weeks later than usual. However, demand is strong, and potatoes are moving rapidly. Our sources report that solids are lower than usual on the Florida crop, which is boosting the volume of potatoes needed. Some potatoes are breaking down because of wet rot. The supply situation appears to be manageable, but the industry is likely to make it through the transition without any major disruptions.

Recent rains have improved crop conditions in North Carolina. They should allow the chip potato harvest to get under way on schedule. No one expects a repeat of last year's bumper crop, but yields could be slightly above average.

In the fresh market, Michigan packers shipped 24,800 cwt of potatoes during the week ending May 22. That is up from 21,200 cwt a year ago. Last week's shipments were 89.1% Russet potatoes, and 10.9% Round White varieties. The remainder were reported as Red potato shipments.

In Wisconsin, packers are selling non Size A Russets in 10# bags for mostly $4.00-$4.50 per 50# bale, down from $4.500 a week ago. Wisconsin 50-70 count cartons are selling for mostly $9.00-$11.00 per 50# box, up from $9.00-$10.00 a week ago. The weighted average price for Idaho Russet Burbanks held steady for the week, at $10.23 per cwt.

Florida new-crop Size A Round White potatoes are selling for mostly $12.00-$14.00 per 50# sack, down from $14.00-$15.00 a year ago.

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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.

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