Potato stocks match last year; prices lower

01/24/2003 12:00:00 AM
Tom Lister

(Jan. 24) BLANCA, Colo. — Jerry Smith sees the latest potato stocks report from the U.S. Department of Agriculture as positive news.

The report estimates Jan. 1 stocks from the 15 major potato states at 232.1 million cwt. That’s just 3% above last season, when shippers saw record high pricing for crops, said Smith, president of shipper Blanfort Inc.

But so far this season, the trend for higher markets hasn’t kicked in.

The USDA reported Jan. 21 markets for cartons of size 70 San Luis Valley russets at $7, compared to $11 last season.

“I really feel the market should have responded more by now than it has, but I guess we’ll wait and see,” Smith said.

The USDA reported Jan. 21 f.o.b.s for 50-pound cartons of size 70 Idaho russet burbanks at $8.50, compared to $12.50 the same time last year.

“I’m still optimistic that we’re going to see (a rise in the market) this season,” said Kevin Stanger, vice president of marketing for Wada Farms Potatoes Inc., Idaho Falls, Idaho. “I just don’t know when.”

SPRING RISE

Some shippers say markets could rise this spring once the industry more clearly sees the demand for processing potatoes.

If the USDA’s Jan. 21 cold storage holdings report were any indication, the shippers might have hope.

The USDA reported total cold-storage holdings as of Dec. 31 at 1.13 billion pounds, compared to 1.24 billion the season before. Of that, potatoes for french fries were at 871.4 million pounds, compared to 1 billion last season.

Still, even with lower markets this season, some shippers say movement has been stalled.

“We’re dead here as far as business the last two or three weeks,” said Walt Okray, salesman and traffic manager for Okray Family Farms Inc., Plover, Wis.

In the near future, movement could still be off. February notoriously is a very slow potato month, Okray said. March is when the market tends to move again, he said.

The USDA showed movement to date for Washington and Wisconsin behind the same time last year. Idaho and Colorado were both ahead.

Colorado’s Jan. 1 stocks were 33% above last year, according to the USDA. Idaho’s stocks were reported at 6% above last year.

Chris Voigt, executive director of the Colorado Potato Administrative Committee, Monte Vista, said the San Luis Valley saw higher yields this fall, with 390 cwt. per acre compared to 315 cwt. for the previous season’s crop. Still, he said, a higher percentage of oversized potatoes would divert many to processing, he said.
PERCEPTION


Prev 1 2 Next All


Comments (0) Leave a comment 

Name
e-Mail (required)
Location

Comment:

characters left

Feedback Form
Leads to Insight