Weekly Potato Report

October 8, 2008

 

From the Michigan Potato Industry Commission

 

Calendar

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

 

Potato Market Update by Bruce Huffaker

 

Markets for open chip potatoes are quiet, as growers concentrate on getting this year's crop under cover. Our sources report sales of open chip potatoes at field delivery contract prices, in both Michigan and New York. While some growers may come up short on contract volume, others appear to have more than they can store comfortably. Chippers who have finished taking field delivery contracts have so far managed to cover needs with open supplies. We are not seeing any early deliveries on storage contracts, at this time.

Canada's 2008 potato crop is a mixed bag. The worst problems appear to be on PEI, where wet summer weather resulted in a lot of water soak, as well as late blight pressure. Reports suggest that 5-10% of the PEI crop will be abandoned. Industry experts fear that potatoes going into storage will not hold well, due to tuber blight and other water-related problems. Crops seem to get progressively better, moving from east to west. Quebec is reporting average yields. However, solids are extremely high in Quebec. That is resulting in bruise damage and high defect levels on chip potatoes. Ontario may have its best yield since 1994. Though Ontario acreage is down from last year, production will exceed the province's 2007 crop by over 2 million cwt.

Economic meltdown is on the minds of all players in the potato industry. Though consumers pulled back on travel this summer, demand for potatoes and potato products, including potato chips, held up well. Now, our sources indicate that chip production has slowed in recent weeks. That may only reflect the normal down turn at the end of the summer. However, everyone is concerned that consumer demand will fall off, due to the recent financial uncertainties.

USDA has stopped quoting prices for Onaways, and indicates that there are not yet enough sales of storage Round White potatoes to establish a market for Michigan. Long Island shippers are selling 50# bags of size A Round White potatoes for mostly $11.00 per bag, unchanged from last week. Long Island chefs are selling for $13.00 per 50# bag, also unchanged for the week.

Wisconsin is selling Russet non-size A potatoes in 10# bags for mostly $10.50 per 50# bale, down from $11.00-11.50 last week at this time. Wisconsin 50-70 count cartons are selling for $15.00-$17.00 per 50# box, down from $16.00-$17.00 a week ago. The weighted average shipping point price for Idaho Russet Burbanks dropped to $24.29 per cwt, from $25.38 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.

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