Weekly Potato Report
October 1, 2008
January 7-9, 2009 – Potato Expo, San Antonio, TX
February 11-12, 2009 – Winter Potato Conference and MSU Variety Day, Comfort
Inn Suites, Mt. Pleasant
Michigan
growers are concentrating on getting this year's crop under cover. Dealers
indicate that there is very little open market in Michigan. The crop appears to
be balanced. Growers are unwilling to part with any overages unless they
receive substantial premiums to contract prices. Chip plants that have finished
receiving potatoes on field delivery contracts are not yet using storage
contracts. Instead, they seem to be picking up extra potatoes from New York and
other areas where production has exceeded expectations. Some New York growers
are selling overages for contract prices, while others are putting the extra
potatoes in storage, in hopes of better prices after the first of the year.
Preliminary
information suggests that US fall potato production will be down about 10% from
last year. In addition to acreage cuts made last spring, the average yield is
expected to fall short of last year's record 409 cwt per acre. An extended
growing season allowed for yields to improve in some key growing areas, including
Colorado, Idaho, and the Red River Valley. However, crops did not finish well
in other areas, such as the Columbia Basin and Michigan. The national average
yield could be down 8-10 cwt per acre from the record.
Chip
plants are starting to contract central Florida potatoes for April 2009
delivery at $16.50 per cwt. That is up $6.00 per cwt from the 2008 contract.
Supply limitations from the 2008 crop put the central Florida growers in a
strong bargaining position. Rising production costs create the need for large
price increases on all chip contracts for 2009. Nevertheless, later increases
are not likely to match the dollar increases that central Florida growers are
commanding. The low yields in that area, along with the high risks caused by
the early season add to the production costs for growing potatoes in that area.
However, high production costs should make growers cautious as they approach
land preparation and planting decisions for the 2009 season. While the open
market has been good this summer, chip plants usually find ways to limit
purchases on the open market. Strong yields, or a slowdown of demand could
quickly result in open prices falling well below contract levels. While
over-budget production might be viewed as gravy,
Michigan
dealers are selling Round White potatoes for $2.00-$2.15 per 10# bag, unchanged
from last week. Long Island shippers are selling 50# bags of size A Round White
potatoes for mostly $11.00 per bag, down from $11.00-$12.00 last week. Long
Island chefs are selling for $13.00 per 50# bag, down from $13.00-$14.00 a week
ago.
Wisconsin
is selling Russet non-size A potatoes in 10# bags for
$11.00-11.50 per 50# bale, unchanged from last week at this time. Wisconsin
50-70 count cartons are selling for $16.00-$17.00 per 50# box, down from
$19.00-$20.00 a week ago. The weighted average shipping point price for Idaho Norkotahs dropped to $23.94 per cwt, from $27.09 at this
time last week.
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