Market Update for Table Grapes

Week of May 11 – May 17

Importers on the East Coast continue to work through remaining inventories while Mexico builds volume quickly in Nogales on both red and green seedless. Demand for Mexican fruit has been relatively light so far, as most retailers continue pulling imports through existing programs. As a result, the spot market for both imported and Mexican grapes have adjusted significantly lower as suppliers compete for market share. Growers in Coachella, California are also trying to find their place in the market, but with only 2 million boxes projected they will not have an impact on the market. Some importers will carry inventories through the end of the month, but most retailers are expected to transition to Mexico by the third week in May. Mexico is projecting a 19 million box crop and will have only 8–10 weeks to move the volume, creating aggressive promotional opportunities as we move deeper into May and June.

Red Seedless

The East Coast red market remains split due to inconsistent quality and condition on imported fruit. Good quality Chilean reds that meet retail spec are trading between $26.00 and $30.00 FOB East Coast, while distressed fruit continues to be pushed into terminal markets. Mexico and Coachella are both harvesting Flames, but berry size has been underwhelming, and retailers have not shown much urgency at current pricing. Mexico and Coachella Flames are currently trading $30.00–$32.00 FOB, but pricing will likely need to adjust lower to gain traction and compete with remaining imports.

Green Seedless

Demand for premium Peruvian Autumn Crisp through May continues to validate the variety and buyers would look to stretch supplies as long as possible. Peru continues to outperform both Chile and Mexico on quality and consistency, while Chile has improved significantly on Autumn Crisp over the last several seasons but still trails Peru at retail. Mexican greens currently sit third in buyer preference, especially with elevated freight rates to the east coast out of Nogales. Chilean Autumn Crisp is trading between $36.00 and $40.00; Peru is effectively out of the market, Mexican Sweet Globes are also trading $36.00–$40.00 FOB Nogales, and Mexican Early Sweets are ranging from $30.00–$34.00 with expectations of lower pricing ahead. Look for promotable green seedless volumes to build out of Nogales by third week in May.

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