Grapes, Tree Fruit and Citrus Market Report Jan 18 to Jan 24
CA has wound down for the season, with growers finishing shipping their last supplies. The import season is in full swing from Peru, but port delays due to labor issues have created a sizeable problem in the supply chain. Container slowdown will likely be an issue all season on container arrivals. The first Chilean breakbulk vessel of the season is due to arrive this week, and will hopefully bring a smoother offload and better inventory to the industry. Increasing demand has helped to keep the market relatively clean, especially on premium varieties. Expect FOB’s to remain relatively stable until we see the 2nd and 3rd Chilean vessels in February.
CA green has also finished for the season. Decent supplies from Peru have begun on Arra 15, Sweet Globe and Sugraone. But port delays continue to plague having reliable inventories of products. With the Chilean start, this should also help level out supplies to be more consistent. Similar to reds, good retail demand going into the start will keep FOB’s at a stable level with just enough supplies to meet demand. This will likely start changing going into February and ad promotions can kick in in better volume.
Import arrivals of black seedless have been extremely minimal on both coasts so far. No solid volume from either country has hit so far. This will correct itself by the end of the month once more Peruvian fruit arrives and Chile begins harvest. Hold off promotions until mid-February for the best arrival window to promote. Until then, supplies will stay minimal on a spot market basis.
Peruvian globes are going strong, but good demand and size peaking on J and JJ have helped keep FOB’s high. Demand is expected to keep the product moving at a good pace, with not much flex expected in the market.
This week will finally turn the corner slightly on cherry availability, as we come out of a huge gap week due to no air arrivals and containers being stuck at the port. The first container arrivals will finally clear customs and allow for some vessel cherry promotions. Overall, vessel arrival volume is moderate compared to historical volume and this will keep FOB’s pretty stable for the remainder of the season. Expect vessel arrival supplies to carry for 2 – 3 more weeks, then wind down relatively quickly by early February. With only a few outlier growers left to finish the crop later into February.
Peaches have remained extremely tight over the last couple weeks, due to a combination of vessel delays and the latest start in recent memory. Volume has been limited to non-existent here at the start. The first Chilean vessel will bring some light relief, with decent supplies arriving this week once the vessel offloads. But also expect to possibly go into another lull between vessels after fresh arrivals clean up. Avoid large promos until supply stabilizes.
The yellow nectarine market has remained even tighter than peaches, with almost no supply up until this point on both coasts. Combine a few miss guided ads in place on either coast, and this has created a demand – exceeds market. With an empty pipeline, some moderate arrivals on the Chilean boat will at least allow some day-to-day availability. Still not time to promote in large volume until we hit mid-February and availability stabilizes. Be cautious until the supply becomes more consistent.
The plum crop will start in a very light way on the first vessel on January 20th, but neither coast will see sizable arrivals until late January once additional early varieties arrive. Expect to see better arrival volume going into February once strong varieties begin arrival. Better growing conditions and increased water availability in Chile should increase both crop volume, as well as fruit size. Plum volume will remain up, depending upon how demand reacts will determine FOB’s for the crop.
Good harvest week expected for clems as the wet weather and fog look to have passed by momentarily. This will keep good harvest volume in the market place and allow for promotions now through late April. Continue to promote.
navel harvest will continue to hit a good stretch, with growers packing out well and keeping the market in supply. Higher demand has helped keep FOB’s stable and slightly higher than the historical average. Promotable supplies through May are expected and will allow for a good volume to sustain the movement. Volume is peaking on 56’s and larger, with some 72 and 88s.
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