Market Update for Table Grapes

Week of July 13 – July 19

The California grape season may have started early, but volumes are coming slower than we typically see. Daytime temperatures are now reaching 100 to 104 degrees and crews are being limited to half days. Last year’s crop came fast, this year growers are making three and four passes on early varieties and being more selective. Inventories are very manageable and demand is good. Most preseason contracts are kicking in and that pricing is ranging lower than the current spot market. The Central Valley could see some light rain this week, which already has growers concerned about the effects of this year’s El Niño. High humidity will also have an impact on fruit quality and crews will need to be very diligent while cleaning before packing. The El Niño has brought warmer temperatures to the South American winter as well, which has fruit growers in Chile and Peru very anxious. With no winter snow accumulation in the Andes, there could be a water shortage for Chilean growers, while Peruvian grape growers are preparing for a very wet spring and summer, with rain predicted throughout the season. The next 6 months for the table grape industry will be very unpredictable.

Red Seedless

The industry is still packing good volumes of Flames, with some growers shipping for another two to three weeks. There are no promotable volumes of proprietary varieties yet, but hopefully that will change by the end of July. Currently, the market on Flames is trading between $24.95 and $26.95 with #2 boxes quietly selling between $20.95 and $22.95. Krissy, Magenta and Passion fire range from $26.95-$28.95 on the spot market but most retailers will be looking to pay significantly less for this fruit over the coming weeks.

Green Seedless

Ivory, Valley Pearl, Princess and Sugraone are all available in the market now, with a handful of Honey Pop just getting started. Overall, this year’s green crop has been a lot easier to pack with much cleaner fruit and better sugar. High humidity could create some mildew issues on green seedless, so that could impact quality going forward. We expected to see big pack outs this week, but we are still a week or two away from promotional volumes. With inventories under control, growers are trying to hold onto higher spot market pricing, even as cheaper ads have started to kick in. Many programs are locked in at $24.95 to $26.95, with the spot market ranging $2.00 to $4.00 higher.