Latest Global News
December 19, 2011 - 10:02
The domestic market is still active, mainly in Generic red and white, basic Cabernet Sauvignon and any Merlot. International buyers secured some remaining volumes, especially Muscat, Chardonnay, Generic Red and Merlot. Buyers and Suppliers have begun conversations for 2012 Muscat and expectations are that much of the available volume will be secured before the end of the year. Grape growers are very firm on their prices, which started even higher than last year. 2012 crop expectations indicate a big harvest, but the uncertainty of 2012 wine prices hasn't seemed to soften the grape market, and buyers have started securing volumes under the current market conditions.
Posted in: Chile
December 19, 2011 - 09:55
Harvest finally ended well into November with Central Coast Reds and the last of the interior-located Rubireds being crushed. North Coast wineries might have salvaged the harvest with a lot of hard work; only time and tasting will tell.
California – Buyers are looking to secure longer term contracts to protect against shortages. Most European buyers will not pay this year’s higher prices and most California suppliers believe that the market is going into a short position for the next few years. The bottom line is there are not enough grapes in the ground to cover demand.
Washington – Nothing should be bought before samples have been approved. The harvest came very late due to cold weather, and when the wine came in, storage and fermentation space were in limited supply. Botrytis,mildew, rot and low brix (<20°) were all problems throughout this year’s harvest.
Oregon - A long cool spring and a cool late summer gave way to measured temperature increases at exactly the right time prior to harvest 2011. This saved what could have been a challenging vintage for Oregon growers. The previous year’s non-bearing acres are starting to come on line and the volumes of bulk wines already available from this vintage reflect an increase in yielding acreage.
Posted in: USA
December 19, 2011 - 09:49
There are mounting concerns regarding disease pressure for the upcoming vintage. Whilst many growers are tackling the issue with preventative sprays, some regions are bracing for a repeat of last year’s conditions. This concern is caused by outbreak of downy mildew, powdery mildew and botrytis that plagued the 2011 vintage. Riverina Shiraz crops are expected to be down by 20-40% in 2012. Adelaide Hills reported patches of downy mildew along with northwest Victoria.
New Zealand: A massive increase in the supply of Marlborough Sauvignon Blanc reduced wine export prices to a new low. New Zealand’s wine exports are worth over NZ $1 billion however, the value per litre has reduced significantly from circa $9.00/L in late 2008/early 2009 to $6.28/L in September of this year, equivalent to $4.71 per 750mL bottle. Although wine exports have more than doubled in the past 4 years, the decreasing value per litre of Sauvignon Blanc is due to the large volume of wine available as well as the increasing number of lots being sold as bulk and moved into cask or lower-end buyers-own-brands. This is further exacerbated by multinational companies shipping their material overseas in bulk and then having it bottled onsite.
Posted in: Australia
December 19, 2011 - 09:45
The frost season has passed with very little damage, though crop threats remain. There are some worries about “La Zonda” winds, which came during flowering, however no major problems are anticipated. The summer storm season is underway, bringing hail damage along with it (hail damage results in a 7 to 10 % crop loss every year). Regardless of potential weather issues, the domestic bulk market has slowed and bulk wineries are trying to move their remaining inventory prior to the start of the coming harvest.
Posted in: Argentina
November 8, 2011 - 10:13
According to forecasts established in October, the 2011 harvest should reach 50.2 million hectoliters. It will most likely be superior to the low 2010 harvest (+ 11%) in the middle of the five year average (+ 7%), but lower than the 2005 and 2006 harvests. All categories of wines will increase their production compared to 2010. The production of AOP wines may increase 7% compared to last year. Wines for brandies will be up 8% over last year. The potential increase in the IGP category could be 16% over last year but the volume of wine produced with the IGP designation may actually decrease due to OCM reform which will force wines that were previously designated IGP (wines of Geographical Indication (IG) to be designated as “Vin de France”). Expect the Vin de France category to increase by 18%.
Posted in: France
November 8, 2011 - 10:08
2011 crop figures for the whole of Spanish production are more pessimistic than last month with a revised 10-15% production decrease, for a total estimated crop of 38 million HL although there is some speculation that price increases are more a reaction to increased buyer demand rather than a smaller crop. In the Castilla La Mancha Region (CLM), yields are expected to decrease 20% (according to some key producers), for a total crop of 19 million HL Wine/Must. Consequently, prices increased by 22% on average for grapes destined to make generic wines and 35% for varietals, with fresh must and CGJ all reflecting this trend. The wines facing the biggest increase in demand are international varietals
such as Merlot, Cabernet, and Muscat. White varietals (Airen and Verdejo) saw the biggest increase compared to red varietals. The only region to see a crop increase was Galicia, known for its Albarino (white wine). Some good opportunities are to be expected, especially as the CLM wines increase in price. Muscat market fears mentioned in the October report have been confirmed. Almost 95% of production has already been committed (must and wines), bought mainly by the Italians; it is no longer possible to get quotes from suppliers for large volumes.
Both White and Red Grape Juice Concentrate and Red Concentrate Must have seen prices increase week after week and available volumes are starting to get low. Some producers have stopped offering quotes to negociants making an already tense situation worse.
Posted in: France
November 8, 2011 - 10:01
The Rand exchange rate, speculation about 2011 carry-over stock, 2012 stock levels and future pricing are the hottest topics since the Rand weakened substantially in September, recovering partially to stabilize around the R8.00/US$ & R11.00/Euro mark. Current expectations are stability at R7.50+ per US$ over the next few months. For now, pricing is stable and stock levels are in balance for reds, while white stocks remain high. Export shipments slowed down in September and October and 2012 harvest for South Africa hinges on a combination of factors, namely: exchange rates, the lower 2011 crop yields in most Northern Hemisphere countries and how these factors effect SA’s main New World competitors: Australia and Chile.
Posted in: South Africa
November 8, 2011 - 09:55
After a very busy harvest, the bulk market slowed down in October, as it always does this time of year. Only the sparkling wine companies are active in buying Riesling base for their sparkling programs. Although the 2011 Riesling crop was large, prices have remained strong for that varietal because the 2010 crop was so small.
Posted in: Germany
November 8, 2011 - 09:54
As the 2011 Italian harvest comes to a close, a 20% drop in production is expected. The only two areas at the national level which have confirmed normal crop yields are the area of Soave in Verona and the Prosecco in Treviso. The prices of Generic Red and White wines have increased by more than 20%, which is moderate compared to other varietals which have seen even steeper price increases (Moscato, Pinot Grigio and Prosecco). Bottlers are buying cautiously as they consider a possible decline in sales due to increases in
retail prices which stem from the challenging economic situation.
Posted in: France
November 8, 2011 - 09:48
The market stabilized in October as we witnessed heavy buying from both domestic and export buyers. The big domestic wineries moved into the market, picking up large volumes of Cabernet and Dry Red wines, while the export clients worked on those same wines and what was left of the Merlot supply. Where Merlot and Chardonnay were in a balanced
position coming into the month, it appears that those wines are now not readily available in the open market. We still see available volume of generic red wine, and even some Sauvignon Blanc and Muscat in the white varieties.
Posted in: Chile