Substantial volumes of Chilean grapes on US East Coast
Table grape arrivals from Chile on the USEC continue at a rate that far outpaces last season. While we all agree that last season was an anomaly, the 2016-17 season is also turning out to be exceptional - but for entirely different reasons. This year the Chilean table grape crop is maturing at a far faster rate than was ever anticipated. This has pumped substantial volumes into the market in an abbreviated period and portends an abrupt end to Flame arrivals, an early start – and corresponding early end – to Chile’s Thompson Seedless season, and an early Crimson season with potentially fewer grapes available in April. The good news is that Chile’s grape growing industry could be on vacation as early as the end of March. The less good news is that in the meantime, the USEC grape market is sluggish, weak and sloppy.
Early and fast-paced harvest
Through Week 3, Chilean sources will have landed almost 4.7 million cases of Flames on the USEC, four times the volume that arrived over the same period last season. Thompson arrivals on the USEC are up by a factor of three and Sugarone arrivals are up by a factor of four. This is even in spite of fruit losses, especially Flames, due to rain just prior to the start of harvest in the earliest regions of the Aconcagua. The heavy arrival pattern, though, is not entirely a reflection of an abundance of fruit on the vine. Rather, it is indicative of an early and fast-paced harvest in all Chilean table grape growing regions.
Soft red seedless table grape market
The red seedless table grape market is soft. In Week 3, movement has been light and prices have suffered under the weight of heavy Chilean Flame arrivals and a substantial inventory at every point of storage on the Delaware River and the inland storage facilities of earlier-arriving Chilean Flames and Peruvian Crimsons. Large (700) Flames and Crimsons are selling at US$ 16 – 20 (mostly US$ 16 – 18) and M-Large (500) at US$ 12 – 14 and getting softer. X-Large (900) are selling at US$ 20 – 24 (mostly US$ 22). In all cases, these prices are off US$ 2 – 4 from Week 2.
The white seedless market is a little firmer although it, too, has weakened over the course of the last seven days and movement is moderate to light. Sugarones from Chile and Peru and Thompsons from Chile comprise the white seedless offering. Large (700) are selling at US$ 24 – 26 and M-Large (500) are moving at US$ 18 – 22 (mostly US$ 18 – 20). XLarge (900) are moving at US$ 26 – 28. As in the case of red seedless varieties, prices are off US$ 4 from a week earlier.
Red Globes are firm at US$ 16 – 18 for Large (700) and US$ 18 – 22 (mostly US$ 20) for X-Large (900).
So, one might ask if there is any good news. There really isn’t. Not right now. But there is a hopefulness that the season will start to right itself in the coming weeks. Indeed, the Chilean Flame harvest is expected to wrap up this week with only odds and ends to be shipped in Week 4. That means that we will likely see Flame arrivals on the USEC continue strong in Weeks 4 and 5 and finally abate in Week 6. The hopeful believe that this means the red seedless market will start to gain some strength in Week 6 and continue to firm up from there. That certainly is the view held by Chile’s grape shippers.
Flames drive down white seedless grape market
The white seedless market may not strengthen as quickly. For the moment, it is the glut of Flames that is driving down the white market, not so much an excess of white grape arrivals. But an early Thompson Seedless harvest has started in the Aconcagua Valley and is beginning in the Metropolitan Region and in the South. So Thompson Seedless arrivals are poised to increase in the coming weeks. And the fruit is coming fast. While growers see a generally light Thompson Seedless crop on the vine, what does arrive will come in a tight window. This could mean that sellers will need to turn four weeks of Thompson Seedless arrivals into six or seven weeks of sales – similar to what has happened with the Flames, although unplanned. With Thompsons, there is some opportunity to plan accordingly.
California rains slow down citrus harvest
Rain in California’s San Joaquin Valley has complicated the domestic citrus harvest. With on-and-off rain for the last few weeks, citrus picking has been sporadic and navel orange and other specialty items' availability has tightened up. While the rain has also blanketed the higher elevations with a much needed snow-pack helping to relieve the region’s persistent drought, citrus growers would dearly like to get into their groves. Heavy rain is expected through late next week.
Today, loose-pack Fancy grade navel oranges in 40 lbs cartons are selling at US$ 18 – 19 for 40’s, 48’s, and 56’s, US$ 15.50 – 16.50 for 72’s, US$ 14.50 – 15.50 for 88’s and US$ 12.50 – 13.50 for 113’s. Choice navels are trading US$ 4 down on 40’s, 48’s and 56’s, more like US$ 2 down on 72’s and 88’s and US$ 1.50 down on 113’s.
Bagged navel oranges in 10 x 4 lbs are selling at US$ 14.50 and 6 x 8 lbs bags are selling at US$ 18.50 for 88’s and US$ 17.50 for 113’s and 138’s.
