Market Update For Table Grapes
Week of November 12 – November 18
The most recent California Storage Report indicates a 40% increase in overall supplies on red, green and black seedless compared to this time last year. This is typically the time of the season when marketers begin adjusting pricing higher as they try to make volumes last through the end of the year. However, with record-breaking volumes currently on-hand, general pricing remains depressed and varies widely from shipper to shipper. There is no standard guiding the market as growers in the Central San Joaquin Valley try to manage the balance of their program, while minimizing significant financial losses due to historically low pricing. In Peru, growers in the northern region of Piura have heeded the warnings of a distressed US market and are directing close to 75% of their crop to European markets. Expectations are to see this trend continue over the coming weeks, until US market conditions improve and retailers transition to South American imports in January.
With almost 3 million boxes of aging Scarlet Royals currently in cold storages, overall quality and condition is continuing to decline rapidly. Within the next week only the best lots of remaining Scarlet Royals will have any bearing on the general market, as the weakest fruit will likely be moved to secondary markets like Mexico. Varieties like Alison and Timco, which were not listed in previous years on the Storage Report have shown a tremendous increase in production with over 2.6 million boxes currently on-hand. With so much fruit left to sell, marketers will have to keep their foot on the gas and continue offering extremely aggressive pricing now through the end of the month. Pricing on good red seedless currently ranges from $11.95-$12.95 on medium/large, $12.95-$13.95 on large and $14.95-$18.95 on x-large depending on condition and variety. Look for excellent promotional opportunities to continue through the duration of the month and well into December.
Overall green seedless volumes currently in cold storages have increased by 1.6 million boxes in comparison to this time last year. Traditional varieties like Autumn Kings are actually lower this year as more growers have replanted vineyards with new proprietary varieties like Great Green, Autumn Crisp and many others. On-hand inventory in cold storages range from grower to grower with some offering aggressive FOB’s in order to move excess supply, while others are asking for firm pricing as their storage lots settle into more manageable levels. Pricing on Autumn Kings currently range from $14.95-$15.95 on large and $15.95-$18.95 on x-large with the mostly market at $16.95. Other proprietary varieties like Autumn Crisp and Great Green are fetching between $17.95-$19.95 with size being the determining factor. Expectations are to see a level market over the next few weeks with some growers beginning to adjust pricing higher by the end of the month.
Black seedless supplies will begin to wind down towards the end of the month. According to the Storage Report there is only 500k boxes of Autumn Royal currently left to sell, which is about 15% less in comparison to last year. However, the category of other black seedless which comprises Moon Drops and other proprietary varieties is still hovering around 700k boxes, which is a 50% increase from last year. Pricing on good quality black seedless currently ranges from $16.95-$20.95 and expectations are to see FOB’s inch higher as supplies become lighter.
Many growers are finished packing California organic red and green seedless for the season. We’ve seen pricing begin to adjust higher as overall supplies begin to slowly decline. Pricing currently ranges from $26.95-$30.95 on both organic red and green seedless depending on quality, condition and shipper. Look for FOB pricing to continue to rise with fewer opportunities to promote now through the end of the season.