The table grape market has eased as buyers and shippers alike settle into the transitional period between the South American and Mexican seasons. Overall movement is also reported to be softer due to the fact that retailers are focusing on other fruits. This situation is likely to remain constant throughout the month of May.
"Pricing and availability on both red and green table grapes has settled, with importers moving fruit in a controlled fashion before Mexican production comes fully on line," shared Ira Greenstein of Direct Source Marketing. "The industry is in a transitional period as promotional activity has slowed and expectations are to see only fair table grape movement through the balance of the month."
Red seedless supplies remaining strong
Supplies of red seedless grapes into the US remain strong. Importers note that Chilean shippers have diverted volume that was otherwise headed for Asia and Europe in the hope of getting better prices. While supplies have been good, prices have remained much the same as they have been in recent weeks.
"Pricing currently ranges from $16-$18 on medium/large, $18-$20 on large and $22-$24 on x-large," Greenstein said. "The industry isn’t expected to see any meaningful volume of Flames enter the US market until the end of the month. With the last bulk vessel from Chile expected on the 13th, importers still have a fair amount of time to move remaining volumes through the pipeline."
Green seedless market has stalled
As reported over the last few weeks, volumes of Chilean green seedless are grapes are nearing their end and the quality of fruit that does remain is said to be waning. Movement has stalled as prices remain at the high levels the market has seen over the past month or so. Buyers and shippers are now waiting for Mexican volume to start increasing.
"The industry is in a transitional phase in regards to green seedless as overall supplies from Chile are beginning to dwindle and only limited volumes are crossing the border from Mexico," Greenstein observed. "Chilean green seedless availability has been declining for the last few weeks with limited lots of good quality storage fruit still available. Pricing on fruit still able to meet retail specifications ranges from $38-$46 with very sluggish movement."
Mexico volumes looking good, but delayed
At the end of May, things will likely liven up as the Mexican season begins in full force. Suppliers say that there is plenty of fruit on the vines and volume is expected to be heavy into June. However, the season has been slightly delayed due to generally cool weather in the growing regions. According to Greenstein, small volumes of green seedless grapes have been making their way across the border, but quality and sizing are reportedly fair at this early stage.
"With a heavy set currently hanging in Mexico, expectations are for ample opportunities to promote in June," he said. "However, cool weather throughout the growing regions of Hermosillo and Jalisco has delayed harvest schedules and promotable volumes of green and red seedless won’t be available until after Memorial Day. A heavy crop of Flame Seedless is currently hanging in Mexico, but reports indicate the crop isn’t coloring so fast. Pricing for the early season green seedless is hovering in the low $40’s and expectations are to see that trend continue for the next 7-10 days. Better volumes will begin crossing by the third week of May with promotable volumes expected by the beginning of June."
For more information:
Ira Greenstein
Direct Source Marketing
Ph: +1 (914) 241-4434
ira@directsourcemktg.com
www.directsourcemktg.com