The California grape crush report for 2014 was released on February 10th, and results were generally in line with expectations. The crop was down in volume from the record 2013 harvest, with reds retreating more than white varieties. Export sales are driven by the grapes coming from the San Joaquin Valley, and intake numbers were down for almost all varieties across the board in that region. We don’t expect a big change in market pricing due to the release of the crop report, as most producers had already estimated that the wine grape crop would be very close to the 3.9 million ton number that was reported yesterday. The French bulk market remains very strong, with prices trending in an upward direction on most varietals. The small crop in Southern France has caused many buyers to move quickly, and supply does not seem capable of meeting current demand. We have seen a lot of action in the Italian market, with Pinot Grigio and Prosecco wines now at the top of many buyers list of needs. Spanish producers are also reporting low inventory of 2014 wines and prices have remained stable. Harvest has begun in the Southern Hemisphere. Argentine suppliers continue to face very tough economic headwinds. Despite those issues, Good harvest conditions give hope for exceptional quality in 2015, and producers continue to have good product to market. The weather has been slightly less cooperative in Australia, with reports of mildew being made in some parts of the country. Producers are hopeful that the relative weakening of the Australian dollar against the US dollar will result in a boost in export sales. The harvest is not yet underway in Chile, but expectations are for a crop that will be larger than that of last year. The bulk market remains steady, with good opportunities for buyers in many markets. Suppliers and buyers alike are getting ready for what should be a very eventful ProWein in March.

 

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