Updated reports are coming in on harvests around the world. The government projections in Argentina have changed dramatically over the past month. Earlier crop reports had projected a 30% decline in volume, but new reports now estimate only a 6% decline from the previous year. In Italy, an updated harvest report now shows that they had a much larger than previously reported crop in 2013, and now holds the title of largest wine producer in the world. Chile continues to report a significantly smaller crop than last year, while Australia and South Africa are expecting average returns. 

The California bulk market has experienced some slowdown, especially in the central valley region. Inventories remain high on several varietals, and storage capacity will be at a premium. Crop estimate reports are mixed in California and it remains to be seen what effects, if any, the draught will have on the coming crop. 

Full World Report, May 2014 - Ciatti Pricing, May 2014