Harvest Progress:

Harvest continues in the wine producing regions of california. Quality of the short crop is questionable resulting from the untimely and intense heat a week ago. All varieties became ready to harvest at the same time. Varieties and fields which were on the fence were over-ripe very quickly. Wineries are playing catch up as they try to get all the tonnes needed through the crushers while attempting to hold off those varieties that appear to continue to be in excess supply to market demands. (think cabernet?)

The cooler weather of this week is helping moderate this rapid maturation and giving some relief to hard pressed growers trying to get through their fields.

A short crop--growing shorter....
Looking around the states wine grape producing regions, the crop is light. As the harvest progresses, this light crop is turning out increasingly short of most forecasts and revisions.
The implications are a boomerang effect in the market place. Some varieties are persisently long and will need a couple of more years to re-balance, however with consumption growth continuing at a steady pace, removals, unfarmed and under-farmed acreage, a weakening dollar and rising demand in the global marketplace, California could find itself in tight supply situations within the next year.

It does not take much imagination to see that some progress on the double digit growth of the imports, by domestic producers could snap this economic picture for wine grapes back into focus.

Watch for more...

California Glut?

With the harvest underway in the valleys of California and economic trepidation on the consumers mind, will the so-called wine glut continue?

Has mother nature issuing untimely rains and heat diminished the crop?

Are the bulk wine inventories an illusion at this time to keep prices down?

Are consumers being provided value in the marketplace from the wineries?