RABOBANK’S Wine Quarterly report about the industry’s outlook for 2019 revealed the large 2018 global harvest has created a shift in the availability and wine prices.
The report showed bulk wine prices have started to ease, with prices for generic wines from Spain and Italy already easing in anticipation of the greater availability that the 2018 harvest will provide.
International prices for Argentine wines are also lower, driven by the peso devaluation.
The report says the eased prices come off the back of a smaller harvest in 2017, with global wine trade throughout much of 2018 reflecting the scarcity out of Europe and Chile.
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In Australia, the report says average prices in local currency have remained stable, despite global trends because of the favourable currency exchange and strong demand from China.
But the Rabobank report cautioned global market dynamics could result in prices easing in coming months.
Expectations in late December pointed to an average 2019 local vintage – about 1.7 million tonnes.
But the report also identified there were some downside risks because of the extremely dry and hot weather experienced so far in 2019.
The report says demand remained solid with Australian wine exports growing by five per cent in volume and 11 per cent in value in a 12 month period to September 2018.