Weekly Potato Report
August 27, 2008
September 23-25, 2008 – Potato Buyer Tour – Grand Rapids, MI
February 11-12, 2009 – Winter Potato Conference and MSU Variety Day, Comfort
Inn Suites, Mt. Pleasant
Chip plants continue to run mostly on contract potatoes, though we have
confirmed some open market sales at $14.00-$15.00 per cwt. Dealers report that
the industry is moving through field-delivery contracts more quickly than
usual. Chip plants do not have enough field-delivery contracts to carry them
through to the normal start of storage contracts. Some field contracts could
run out by the start of October. At that time, buyers will either have to start
using storage contracts, or resort to open market purchases. Either option
could prove to be costly. If delivery on storage contracts starts early, that
will leave fewer potatoes to run chip plants during April and May. Unless
yields come in above current expectations, growers will be reluctant to part
with open potatoes, for fear that they will come up
short on their contract obligations.
Preliminary discussions have started on contracts for 2009 spring chip
potato contracts. One source indicates that growers are looking for price
increases in the neighborhood of 60%. The growers need large price increases,
in order to cover rising costs for land, fuel and fertilizer, as well as to
provide a reasonable return for the risks that they take growing early
potatoes. Some growers may consider other alternatives to potatoes, because of
the risks involved in growing that crop. The industry may need to contract more
early potatoes for delivery during April and May, because of expectations that
this year's storage potatoes will clean up earlier than usual.
Michigan growers are receiving $2.25-$2.40 per 10# bag for Onaways,
unchanged from week-earlier prices. USDA indicates that there is a gap in
Delaware supplies this week. That harvest is winding down. Long Island shippers
are 50# bags of size A Round White potatoes for $12.00-$13.00. Long Island
chefs are bringing $16.00 per 50# bag.
Unofficial reports indicate that Michigan growers are selling 2000#
totes of Russet Norkotah potatoes for $18.00-$20.00 per cwt, down from $20.00
per cwt a week ago. Wisconsin is selling Russet non-size A
potatoes in 10# bags for $11.50-$12.00 per 50# bale, unchanged from last week.
Wisconsin 50-70 count cartons for $22.00-$25.00 per 50# box, down from
$27.00-$28.00 a week ago. The weighted average shipping point price for Idaho Norkotahs is $33.57 per cwt, up from a revised $33.34 at
this time last week.
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