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Ciatti California Report May 2019

May 17, 2019

... the ongoing quietness of the grape market - currently even quieter than the bulk wine market - raises the prospect that not all growers with 2019 grapes still uncontracted will be able to find homes for those grapes. The hesitancy shown by grape buyers has likely been compounded by the delay in the publishing of the 2018 crush report and the current uncertainty regarding the 2019 harvest. Most activity occurring on the grape market is the renegotiation of existing contracts or some re-signs from last year: we have surveyed grape buyers in a few selected areas and found more than 70% responding that they are seeking to adjust or cancel supply contracts, with nearly 50% looking to renegotiate price. Ciatti's Glenn Proctor presented an in-depth update on California's grape and bulk wine markets - titled 'Change is here: a new market reality?' - at the 24th Annual Vineyard Economics Symposium in Napa on May 8th