Northern Hemisphere vintage update

The September 2016 Ciatti World Report provides an update on global growing conditions and the bulk pricing market.

Ciatti reports that California is expected to harvest a crop in line with the five-year average and prices are predicted to remain firm.  In Argentina, supply is tight, prices are high and activity is low. Domestic buyers of generics are now scouting Chile and Spain and there are fears of spring frosts. Chile has a low inventory of good quality wine, with Pinot Noir and Merlot close to being sold out and Cabernet expected to be sold out by December.

In France, drought and drying winds in the southern growing regions have led to the crop forecast being revised down. The 2016 vintage is now expected to be 10 per cent smaller than last year and 7 per cent smaller than the five-year average. This has led to prices firming and 2016 vintage Provence rosé is expected to be ‘hot’. August in the main growing areas of Spain was very dry, with little or no rain and the harvest forecast has been revised down. However, Ciatti expects that Spain’s very attractive pricing isn’t going to change, even if the harvest turns out not to be as big as first thought. Harvest in Italy is 10 days behind schedule and early signs are promising for quality. Stocks of entry-level wines and Prosecco are very low ahead of the new harvest.

Ciatti reports that New Zealand Sauvignon Blanc is in demand internationally (particularly from the US and UK) and that demand is rising. NZ exports have risen by 10 per cent in the last year to just under NZD1.6 billion, marking the 21st consecutive year the industry has experienced significant export growth. Domestic sales and exports to Australia have been overtaken by exports to the US (now NZ’s largest export market) and UK.

Wine Australia’s Global Supply Monitor provides a one-page snapshot of growing conditions and historical production volumes for Australia and seven key competitors.