Grape storage report for California grapes
Following is Dayka & Hackett's market perspective for each category:
Red Seedless grapes: California Crimsons continue to be harvested. The state is struggling with both size and color and we expect most of the good size and quality fruit to be shipped out by the second week of December. Current prices for California Crimsons range from $7-11 FOB the cold storage for medium size and $12-16 for large grapes. We expect some low color, small fruit to be dumped in late December as the market is limited for this type of fruit and too much of it has been packed. Most good quality red grapes will be shipped by the second week of December.
A small amount of Peruvian Flames are hitting the U.S. market. Sizes are generally large, stems are green and color is excellent. Demand is good at around $28 FOB Philadelphia. Dayka & Hackett will import Peruvian grapes through mid to late December and we expect the prices to remain the same or go slightly higher in mid December.
Chilean Flames are expected to be in good demand from the beginning at similar prices described for the Peruvian Flames. Small size fruit (16-17 mm) will be more challenging and the industry must be careful not to “flood” the market with smaller fruit.
Green Seedless grapes: This is a difficult market to judge. There are enough good quality green grapes from California to supply the market for the next 2-3 weeks. Thompsons, Princess and Autumn King are being used by approximately 75-80% of most major U.S. retailers. Prices are generally $15-16 FOB average at the cold storage for 16 pounds with some higher for exceptional quality.
Approximately 1300 containers (a 55% increase over last year) have arrived or will arrive on Brazilian Festival Green seedless. Current market prices range from $18-22 FOB Philadelphia for 18 pound bags. Demand is slow as only 20-25% of US retailers are currently taking Brazilian grapes. Off grade product is selling at lower prices and some fruit has been consigned to U.S. wholesalers. Dayka & Hackett is selling at $20-26 sales price Philadelphia and expects the market to firm up to $24-28 for mid December.
Peruvian Sugarones are expected to become available early December and should sell in the $28 range to start.
Chilean Sugarones and Thompsons will face competition from Brazil, but are expected to open at $28-34 depending upon size and quality. We believe Chilean Perlettes will face challenges and will trade at $4 less than Brazilian Festivals; this means we expect Perlettes to be around $20-22 sales price and could be lower if too much competition comes from the Festivals, Sugraones and Thompson's.
Black Grapes: Autumn Royals will finish around Christmas and the market is expected to empty/open when the first volumes of imported Black grapes arrive in late December/early January.
Red Globes: Approximately 30% of the remaining 3.3 million Red Globes in California will be exported to Asia and another 30% will be exported to Central and South America. Demand for good quality Red Globes from Peru should fetch $24 around mid to late December.
Special Programs: Dayka & Hackett specializes in providing year round programs to U.S. supermarkets including special programs on clam shells and wraps. The clam shells generally fetch a premium price including $32 plus for 6x3 clam shells through December 20th. Prices for 10x2 clam shells in January will be around $20 for medium fruit (limited quantities) and $22 for large fruit. Please speak to Tony, Tim or Ralph about opportunities in these programs as clam shells as clam shells now represent 30-35% of our business year round.