The chip potato business has been quiet, typical for this time of year. Movement has been steady. Chip advertisements ahead of the Super Bowl appear to be up significantly, compared to the past few years. Contracting for the 2024 crop is finished. Volumes are mostly flat, while prices are flat to down 1%-2%.
Current market signals indicate at least a 65% probability that US growers will plant fewer potatoes in 2024 than they planted in 2023. Open-market prices for table potatoes are down significantly from year-earlier levels. However, prices for most competing crops are also down from where they were a year ago. Table potato movement is the strongest since 2000, but supplies are backing up. After two years of raw-product limitations, fryers in the Pacific Northwest contracted for more 2023-crop potatoes than they have the capacity to use. Processing supplies appear to be more balanced in other regions. Favorable growing conditions in the Pacific Northwest boosted 2023 yields to near-trendline levels, after falling short during the previous two years. In addition, U.S. growers planted 49,000 more acres to potatoes during 2023 than they did a year earlier. Yield and acreage increases led to production growth in nine of the 13 reporting states. The U.S. needs to produce fewer potatoes in 2024 than it did last year. However, if yields remain at trendline levels, it will take a large acreage reduction to support stronger prices.
U.S. packers shipped 1.767 million cwt of table potatoes during the week ending January 27. That is up from 1.452 million cwt shipped a year earlier. Michigan packers shipped 67,883 cwt of potatoes during the week ending January 27. That is up from 55,835 cwt shipped during the same week in 2023. Last week’s Michigan shipments were 79.3% russets, 13.6% yellow potatoes, 4.2% round white potatoes, and 2.9% red potatoes.
USDA reports that Michigan packers are selling size A russets in 10-pound bags for $10-$14.75 per 50-pound bale, unchanged from last week. They are selling size A russets in 5-pound bags for $11-$15.75 per 50-pound bale, also unchanged. Wisconsin packers are selling size A russet potatoes in 10-pound bags for mostly $8.50-$9.50 per 50-pound bale, down from $9-$10 per 50-pound bale last week. They are selling russet 40-70 count cartons for mostly $10-$12 per 50-pound box, unchanged from a week ago. The weighted average shipping point price for Idaho Russet Norkotahs is $15.31 per cwt, unchanged from last week.
Wisconsin packers are selling 10/5-pound bales of size A yellow potatoes for mostly $14-$15 per bale, down from $17-$17.50 per bale a week ago. They are selling 50-pound cartons of size A yellow potatoes for mostly $14-$15 per 50-pound box, down from $17-$17.50 per 50-pound box last week. Red River Valley packers are selling size A yellow potatoes in 2,000-pound tote bags for mostly $21-$22 per cwt, unchanged from a week ago. They are selling yellow creamers in 50-pound cartons for mostly $30 per 50-pound box, also unchanged.
– Report by North American Potato Market News