Market Report January 22, 2025

News Category: Market Reports
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Chip potatoes are plentiful, but supplies appear to be more balanced with demand than they were a year ago. Business has been steady. Chip companies continue to run almost exclusively on contract potatoes. There is practically no market for open potatoes. Growers report that contract prices, on average, are up 1.0%-1.5% for the 2025 crop. Freezing temperatures and snow could affect chip potato production in Northern Florida.

Ontario and Quebec have larger chip potato inventories than they held a year ago. Combined Jan. 1 chipstock supplies in those provinces exceeded the 2024 inventory by 474,000 cwt, or 10.0%. December chip potato disappearance in Ontario and Quebec fell 12.8% and 24.9% short of the 2023 pace, respectively. We believe that supplies are adequate to carry the Canadian chip industry through the storage season. Canada also had approximately 15.55 million cwt of table potatoes left in storage on January 1. That is 520,000 cwt less than it held a year earlier, a 3.2% decline. Favorable exchange rates are supporting strong Canadian table potato exports to the US. Shipments totaled 2.46 million cwt between Aug. 1 and Nov. 30. That is 9.4% more than 2023 exports during the same timeframe. Canadian growers and shippers are concerned about the impact of potential tariffs on their ability to sell potatoes in the U.S. market.

USDA now reports that growers produced 420.24 million cwt of potatoes in 2024. That is 19.89 million cwt less than the 2023 crop, a 4.5% decline. However, it is 2.39 million cwt more than USDA’s November crop estimate. The government adjusted production estimates for all the reporting states, except Idaho. That included increases for eight states and lower estimates for four states. Washington, North Dakota, and Oregon reported the largest increases. A portion of those adjustments were offset by a large reduction in Michigan’s reported production. USDA cut its harvested area estimate for the state by 3,000 acres, to 47,500 acres. It also reduced Michigan's yield estimate by 20 cwt, to 420 cwt per acre. The net result was a 2.27 million cwt reduction in Michigan’s 2024 crop estimate, to 19.95 million cwt, 7.5% less than the 2023 crop.

U.S. packers shipped 1.836 million cwt of table potatoes during the week ending Jan. 18. That is up from 1.607 million cwt shipped a year earlier. Michigan packers shipped 15,689 cwt during the week ending Jan. 18. That is down from 73,040 cwt shipped during the same week in 2024. Last week’s Michigan shipments were 86.8% russets, 10.9% round white potatoes, and 2.3% red potatoes.

USDA reports that Michigan packers are selling size A russets in 10-pound bags for $10-$11 per 50-pound bale, unchanged from last week. They are selling size A russets in 5-pound bags for $11-$12 per 50-pound bale, also unchanged. Wisconsin packers are selling size A russet potatoes in 10-pound bags for $9-$10 per 50-pound bale, unchanged from a week ago. They are selling russet 40-70 count cartons for mostly $12-$13 per 50-pound box, also unchanged. The weighted average shipping point price for Idaho Russet Norkotahs is $16.52 per cwt, unchanged from the previous week.

Yellow potato prices for Wisconsin were not reported this week. The remaining inventory of yellow potatoes are likely in too few hands. Red River Valley packers are selling size A yellow potatoes in 2,000-pound tote bags for mostly $19-$21 per cwt, up from $18-$20 per cwt a week ago.

Report by North American Potato Market News