Weekly Potato Report

From the Michigan Potato Industry Commission

June 2, 2010

Potato Market Update by Bruce Huffaker

Chip potato supplies are more than adequate to meet current needs. There is not a lot of demand for open Florida potatoes, at this time. However, some chip companies may need those potatoes to bridge the transition to the Missouri and North Carolina crops. Our sources indicate that demand for potato chips remains strong.

Michigan's 2010 potato crop appears to be in good condition. While growers still have a few potatoes to plant, the crop is developing ahead of schedule in most areas. Some acreage may have shifted from table potato varieties to chip varieties, but it appears that total acreage is very close to 2009 levels. Recent rains have slowed late planting, but should help crop development.

US potato acreage may not be down as much as was anticipated earlier this spring. Fryers and dehydrators have cut back on contract volumes, but some of the volume reductions were reversed during the planting season. In addition, it appears that growers did not cut back on planting by enough to offset their contract volume reductions. They chose to grow more open potatoes, believing that they will be able to sell those potatoes on the open market. Based on the available information, it appears that US fall potato area will fall 5%-7% below 2009 plantings.

In the fresh market, Michigan packers shipped 21,600 cwt of potatoes during the week ending May 29. That is up from 14,000 cwt a year ago. All of last week's shipments were Russet varieties. The shipping season is quickly winding to a close.

In Wisconsin, packers are selling non Size A Russets in 10# bags for mostly $4.00-$4.50 per 50# bale, unchanged from last week. Wisconsin 50-70 count cartons are selling for mostly $10.00-$10.50 per 50# box, up from $9.00-$11.00 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 per 50# sack, down from $12.00-$14.00 a week ago.

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.