“Through week 9, Chilean table grape loadings worldwide continue to lag behind last season by 24 percent” says Mark Greenberg, CEO of Capespan North America. Loadings to the US East Coast are only 21.9 percent below last season while loadings to Europe and Asia are down by considerably more. “In spite of a continued weak US table grape market, the troublesome condition issues that many Chilean grape growers have faced make Chile’s nearest and most accessible market, their best alternative.”
Flames have rapidly fallen from grace
Since week 8, Flame loadings to US East Coast and US West Coast have declined dramatically and the last of the Flames will arrive in week 11 with some stragglers in week 12. “Receivers and their customers will be happy to see the end of what has been a rough ride for this sensitive variety that has so rapidly fallen from grace,” commented Greenberg.
The grape harvest in Chile’s Central Valley continues with Crimson and increased volumes of new varieties. Perhaps what is most important is that 22,000 metric tons of Thompson Seedless (approximately 2.7 million cases) augmented by a further 5,000 metric tons of Sugarones (approximately 610,000 cases) have loaded for the US East Coast in the last three weeks. These volumes started to hit the US East Coast market in week 10 and will continue until at least the start of the Marketing Order for Table Grapes.
Pressure from Thompson grapes
While Peruvian and South African seedless grape arrivals are declining, Chilean arrivals are on the rise. The 27 percent deficit from last year’s arrivals will decline to 20 percent in week 11 and will continue to decline as Chile’s Central Valley harvest continues. The greatest immediate pressure in the market will come from white seedless grapes as Thompson arrivals on the US East Coast will likely top 1 million cases per week for the next three weeks before volumes begin to decline.
Of course, arriving volume is only part of the story. There is also the issue of existing stocks that need to be managed. There are several receivers in the market with heavier than desirable inventories. While activity in the market has improved over the last few weeks, inventories have continued to build.
Finally, at a most inopportune moment earlier this week, a snowstorm hit the northeastern seaboard from Virginia to Maine and hampered port operations on the Delaware River on Wednesday. While operations are back to normal, shipping for weekend business is backed up.
Contact:
Mark Greenberg
Capespan North America
Tel: (514) 739-9181