W36: Weekly Grape Insights

W36: Spanish Grape Production Starts to Decrease With Demand Remaining High

After the two highest production weeks for Spanish seedless grapes, from W36 the harvest volume began to decrease. The downward production trend will gradually continue until the end of the campaign, leaving room in the market for seeded grapes, which will enter its peak production period in the coming weeks. Demand for Spanish seedless grapes is still very high due to the lack of substitute products in the market and adverse weather conditions suffered last week in other producing countries, like Italy. This situation has diverted the demand from German retailers to Spanish production to a higher degree. The price trend for Spanish seedless grapes is stable in W36, ranging between USD 2.20-2.30/kg EXW Spain.

Good Prices of Autumn Crisps in W36 in California

The Californian autumn crisp harvest started in W33, and due to high demand, prices have remained stable. In W36, the EXW price stood at USD 26.45 per 19lb package. Farmers expect that prices will remain stable and this season will be profitable.

US Sweet Globe Grapes Arrive to Vietnam by Sea

In W36, Sweet Globe grapes from the United States arrived Vietnam by sea. The arrival of the fruit by sea freight will create local competition between grapes that are imported by sea and by air since the price of grapes that arrive by sea is lower.

New Heat Wave is Affecting the Color of California's Grapes in the US

Record high temperatures hit California's Central Valley, with over 110°F being one of the worst heat waves in recent years. The extreme heat is causing some color problems for red and black grapes, with the color only covering 90-95% of the fruit. Despite the color being affected, the flavor is good with Brix levels of over 20+.

Rainy Weather and Stagnant Market Demand Hurt Greek Grape Exporters

Rainy weather in Greece during the last week of August has complicated the supply of seedless grape varieties. The quality of traditional varieties such as Thompson and Red Crimson from open air vineyards are negatively affected by rain and high air humidity.

Producers in the Peloponnese region have resorted to cut, store and distribute their produce as quickly as possible to prevent losses. However, buyers in Germany and Austria, who traditionally absorb these spot deals, are not doing so this season due to stagnant demand from the West European retail sector.

The UK market introduces further uncertainty into the 2022 season. Port strikes and land logistic inefficiencies make the supply of Greek grapes on fixed price terms programs too risky and too difficult to support. Retailers will not absorb the cost increases that this high risk brings. Thus, Greek suppliers are awaiting opportunities from Dutch wholesalers instead. However, Greek suppliers do not want to dismiss the option of direct sales to the UK since there are no safe markets this season and eventually they will take position in the UK.

In the Kavala area, EXW prices are expected to remain stable for the month of September at USD 2,05/kg for red seedless and USD 1,85/kg for Thompson white seedless.

Major European Grape Producers Enter Peak Production Period

Italy, Spain and Greece, the three major producers of grapes in Europe, are in their peak production periods and exporting at full capacity to the rest of the continent. The larger supply volume in the market is reflected in the sales prices with white seedless grapes affected the most. Thompson seedless grapes from Greece were offered at the end of W35 for USD 9.00/5kg box FOT whilst Sublima from Italy traded slightly higher at USD 10.00/5kg box. The Puglia region of Italy experienced some rain which will delay the harvest until the middle of W36. However, sufficient volumes are already stored in cold chambers so the supply from Italy will not be affected and exports are expected to continue normally.

The market demand for red and black seedless grapes are high and increasing which is reflected in the price. In W35 red seedless grapes from Spain (Crimson and Sweet Celebration) were trading USD 11.50-12.00/5kg box, with Carlita, Fiametta (red seedless) and Summer Royal (black seedless) from Italy reaching the same price as their Spanish competitors. No major changes are expected on the market in W36 for red seedless grapes. However, white seedless grapes could experience some downward pressure on price due the increased volumes shipped from Greece and the quality issues experienced by Italian supply, mostly related to the heat, sunburn and dry stems.

US Jack Salute and Great Green Grapes Begun Exports to Asia in W34

Red seedless Jack Salute grapes and green seedless Great Green grapes from the United States began their exports to the Asian market in W34. These varieties are performing well in the Asian market due to their good flavor, sizes of over 20mm, and Brix levels of over 20.

W35: Spanish Grape Production Cannot Keep Up With Demand

Demand for Spanish grapes during W35 was very high due to two primary reasons. Firstly, the adverse weather conditions in other producing regions in Europe, such as the recent rains in the Puglia area of Italy, resulted in lower production volumes in the market. Secondly, there is a lack of substitute products on the market due to the shortage of other seasonal products. Although producers are facing their peak production period, they do not have enough volumes to cover the current market demand. The price trend for red and black seedless grapes is upward trading between USD 2.20-2.30/kg EXW Spain. The price trend for white seedless is stable trading at USD 2.00-2.20/kg.

The Harvest of Jack Salute Grapes in California Delayed by One Week

The harvest of Jack Salute grapes in California was scheduled to start on W35, but the grapes didn’t have the right color because of the constant change in temperatures in the valley. It is forecasted the harvest will start in W36.

US Black Grapes Arrive to Vietnam Via Sea Freight

Sea freight US grapes started to arrive in the Vietnam market. During August and September, black grapes are shipped to Vietnam by sea due to better pricing than air freight. In W35, the price of US black grapes in the Vietnam market stood at approximately USD 42 per 19lb box.