Weekly Potato Report

From the Michigan Potato Industry Commission

June 16, 2010

Potato Market Update by Bruce Huffaker

Chip harvest focus has shifted from Florida to North Carolina and Missouri. Our sources indicate that Florida growers still have a few chip potatoes to move, but delivery is difficult, due to heat. Dealers indicate that North Carolina chip potato quality is only fair, due to problems with immaturity. However, chip companies cannot wait for the crop to mature. A few loads of North Carolina potatoes have sold at $10.00 per cwt, to cover Florida contract shortfalls, but dealers hesitate to call that a market price.

Growers across the northern tier of states are concerned about wet weather. Our sources indicate that the last Michigan potatoes were planted on June 15. Growers in other areas, particularly the Red River Valley, still have a few potatoes left to plant. Water damage has been minimal in most growing areas, though low spots have been drowned out. Damage may be more serious in NE North Dakota, where growers are reporting significant losses to seed piece decay and other emergence issues.

USDA puts June 1 potato stocks at 51.3 million cwt. That exceeds year-earlier holdings by 6.0 million cwt, or 13.2%. Michigan's stocks were grouped with other areas where disclosure is an issue. That group had 600,000 cwt of potatoes in storage on June 1, compared to 800,000 cwt at the same time in 2009. There are a number of issues with the USDA stocks data. Idaho probably has more potatoes in storage than USDA is reporting. On the other hand, stocks for Washington and Oregon (combined) appear to be overstated. Wisconsin's stocks may be close to the 2.0 million cwt reported, but growers maintain that this year's stocks are lower than year-earlier holdings. We believe that the data for last year's Wisconsin holdings are understated.

In the fresh market, Michigan packers shipped 17,500 cwt of potatoes during the week ending June 12. That is down from 27,500 cwt a year ago. Shipments were 84.0% Russets and 10.3% Round White varieties.

In Wisconsin, packers are selling non Size A Russets in 10# bags for mostly $5.00 per 50# bale, up from $4.00-$4.50 last week. Wisconsin 50-70 count cartons are selling for mostly $10.00-$11.00 per 50# box, unchanged for the week. 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, unchanged for the week.

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