Market Update for Table Grapes
Week of Nov 8th – Nov 15h
Table grape sourcing teams are having to navigate through a very interesting transition from California domestic supplies to South American imports. We are watching the California storage report closely, but the data could be a bit misleading. There are still more than 11 million boxes in storage, which would indicate that marketers could possibly supply the industry into December, but quality is still a big question mark. We know that some California growers are repacking older lots, and we have seen a rise in retail rejections. Week 44 exports from Peru were a bit surprising as we were not expecting to see 1.4 million boxes exported. Heavy rains in Piura slowed harvest considerably, and many growers were reporting much lower volumes. Some reports have Piura down by more than 40%. This is why week 44’s data is hard to explain. We do know that Ica started much earlier, and the 1.4 million boxes are likely due to the jump in exports from the southern region. Either way, this is a sign that there will be good options for buyers through the balance of the month. The East Coast already has decent supplies of imports available, and California looks to be in play through Thanksgiving.
Red Seedless
The red seedless market is a bit more complicated because we are seeing a wide range of quality, size, and color in both imported and domestic red grapes. California still has more than 5 million boxes left in storage, and currently, weekly shipments have fallen below 900k boxes. That means California will continue to fight for market share well past Thanksgiving. Early red grapes from Piura haven’t necessarily impressed, and quality from California remains inconsistent. Many retailers will continue to support domestic red grapes for another two to three weeks, so importers need to keep the spot market priced to sell. We will start to see much better-quality fruit from Ica, with good volumes of Ruby Rush and Allison going on water now. Currently, the spot market on the East Coast ranges from $24.00 to $28.00 for food service quality and $30.00 to $34.00 for good quality XLG and Jumbo imported reds. Those importers trying to obtain a premium must have something special, as the general market can’t support $38.00 to $40.00 quotes.
Green Seedless
Importers have been trying to maintain high spot market pricing for Peruvian green seedless on the East Coast, but they must be cautious not to take FOBs too high. There are still 5 million boxes of green seedless in California cold storages, a number that seems typical for mid-November. We know not all that fruit will make it to the market, but there is still enough good quality fruit to compete with imports arriving on the East Coast. We saw more than 1 million boxes of green seedless exported week 44 to the U.S., a number that indicates that Peru’s volumes have not been impacted by the short crop in Piura. It’s the early volumes from Ica that seem to be supplementing the lower volumes from the north. Currently, the spot market for imports on the East Coast ranges from $34.00 to as high as $42.00, with condition, variety and size being the determining factor. California isn’t really quoting spot market availability as most of the fruit left is committed to retail programs.