Weekly Potato Report

 

November 5, 2008

 

From the Michigan Potato Industry Commission

 

Calendar

November 12, 2008 – U.P. Fall Banquet, Terrace Bay, Escanaba (4-6pm)

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

 

The last Michigan chip potatoes should be under cover before the end of this week. Growers are not anxious to sell open potatoes until they have a better indication of where they stand on contracts. Some growers are concerned that storage problems could develop in some bins, before the potatoes can be reconditioned for chipping. Most chip plants are running on contract potatoes, but areas where there are overages report sales at contract prices.

Very few 2009 contracts have been settled. Growers report less pressure to increase early acreage than had been anticipated. Demand for potato chips seems to have slowed down, though the high solids in this year's crop may be responsible for the recent slowdown in chip potato movement. Early contract discussions center on contract price increases of $4.00 per cwt, or more. Some growers who have been willing to thin margins in the past have realized that they cannot continue to do so, due to the risks associated with growing potatoes, including weather losses, as well as volatile markets for production inputs.

United Potato Growers of Canada put together a production forecast last week. It puts Canadian potato production at 99.0 million cwt, which is down 10.5 million cwt, or 9.6%, from the 2007 crop. The growers organization indicates that production will be down in every province except Ontario and Saskatchewan. If the data are accurate, Ontario growers produced 7.9 million cwt of potatoes, which is 53.8% more than last year, and would be the province's largest crop since 2003. Ontario growers will have a significant volume of chip potatoes to ship into US markets this year.

Michigan Size A Round White potatoes are selling for $2.20-$2.60 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, unchanged from last week. Long Island chefs are selling for mostly $12.00 per 50# bag, also unchanged for the week. Maine growers are selling 5# bags of 2" minimum Round White potatoes for $10.00-$11.00 per 50# bale, unchanged from last week at this time.

Michigan shippers are selling Size A Russet potatoes for $2.25-$2.60 per 10# bag, unchanged for the week. Wisconsin is selling Russet non-size A potatoes in 10# bags for $10.00-$10.50 per 50# bale, unchanged for the week. Wisconsin 50-70 count cartons are selling for $13.00-$15.00 per 50# box, down from $15.00-$16.00 a week ago. The weighted average shipping point price for Idaho Russet Burbanks dropped to $21.10 per cwt, from $22.85 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 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.