Market Update for Table Grapes

Week of March 17 – March 23

Table grape exports from both Peru and Chile have dropped to 3 million boxes over the past three weeks, which has provided some optimism that the markets could rebound in April. Currently, importers are still sifting through significant inventories, but so much of this fruit can no longer meet retail spec and will be sent to wholesale markets. Buyers should expect a split market through the balance of the month, as importers try to take pricing higher for fresh quality arrivals. With so many Chilean exporters no longer loading containers, volumes to the U.S. have dropped because exporters have struggled to secure space on the limited bulk vessels. We should see a jump in volumes over the next two weeks, with the USDA marketing order taking effect on April 10th, but if those numbers come in like what we have seen over the past three weeks, don’t be surprised to see the spot market jump. For now, quality and freshness will determine if marketers can get back to selling fruit at profitable levels.

Red Seedless

Imports of premium Peruvian Sweet Celebrations, Jack Salutes and Allison have declined each week, but better volumes of Chilean red seedless are arriving, keeping the spot market at well below profitable levels. There is a split market for aging weaker lots and quality fresh arrivals, and we should see this wide range in FOBs continue through the balance of the month. Chile should start loading better volumes of Crimsons and Allison, as we get closer to the April 10th marketing order. Mexico won’t have any meaningful volumes of red seedless grapes until the 20th of May, so don’t be surprised to see the spot market jump on quality red grapes in April. Currently, the market ranges from $20.00 to $24.00, with the mostly market at $22.00 for fresh premium red grapes.

Green Seedless

Premium Peruvian Autumn Crisp continue to outperform the general market with the very best lots trading between $32.00 and $36.00 FOB. This is a considerable premium in comparison to other varieties, as Chile Sweet Globes, Arra 15s and Timson are selling between $20.00 and $22.00 for quality fruit. There are still substantial volumes of aging Peruvian fruit, with pack dates still going as far back as late December. This fruit has no bearing on the general market, as it can only be liquidated in the wholesale markets. Retailers are still looking for aggressive prices to promote green grapes, but there is a fine line between price and quality right now. We should see the spot market firm over the next three weeks for the best conditioned fruit, but pricing should still be promotable until the15th of April. Growers from Jalisco, Mexico will start harvesting by the end of the month, but most of that fruit is programmed so it may not impact the South American spot market.