Market Update for Table Grapes

Week of January 12 – January 18

Weeks 50 and 51 saw exports of table grapes from South America exceed 4 million boxes and the expectation was to see similar or even higher volumes leaving week 1. Only 2.95 million boxes from both Peru and Chile were shipped week 1, possibly the result of the New Year holiday but either way not what the industry was expecting. We should see a correction in week 2. For now, though volumes will be steady, demand is also very good, so the markets seem to be in balance. With last week’s lower exports, the spot market should hold at current levels through the balance of January. February is still shaping up to be a great time to promote grapes, with Chile’s central zone ready to get in the game. Ica, Peru is still running at least two weeks behind, mainly green seedless varieties, but the volumes will come by the end of the month.

Red Seedless

Demand for green seedless still tops red every week, but the red seedless currently arriving from Peru is outstanding with very high brix, contrary to the Ivory and Sweet Globes from Peru. The warm days followed by very cool nights are perfect for red grape color and maturity. As growers in Ica continue to fight sugar on green grapes, retailers can take advantage of and look to promote imported red grapes for Valentine’s Day. Chile’s central zone will start exporting more red grapes over the next two weeks, so there should be ample supply to support early February ads. Currently, the market ranges from $30.00 to as high as $36.00, but the mostly market is $32.00 FOB East Coast for XLG. West Coast FOBs are trading $2.00 to $4.00 higher. The spot market should hold at these levels, especially with lower priced promotions already in place to help keep fruit moving and inventories under control.

Green Seedless

Green seedless exports continue to outpace red seedless almost 2 to 1, with 1.7 million boxes exported in week 1 representing more than 60% of all varieties exported to the U.S. We have seen the spot market adjust lower over the past 10 days and now it seems to be settling in between $28.00 and $34.00, depending on size and variety. The very best Ivory and Sweet Globes are holding the top end of the market. The expectation is to see prices hold at these levels through the balance of the month, with the very best Autumn Crisp still reaching a premium. Volumes of Autumn Crisp from Ica have been delayed, but we should see better volumes by the end of the month. Retailers are currently promoting and will be through the end of January, which is helping move through the average 2 million boxes of weekly imports.