Extreme weather and early harvests: restrained market response
Most countries have this month reported into the Global Market Report with abnormal weather conditions, as the strong, developing El Niño phenomenon exacerbates extremes around the world: Western Europe has been enduring its hottest summer on record, with three consecutive months of protracted, intense heatwaves; giant Andean snows have blocked border crossings between Chile and Argentina for a month, with flash flooding at lower elevations on the Chilean side and unseasonably mild temperatures on the Argentinian; meanwhile, the Western Cape, having suffered significant flooding in autumn, has since experienced an unseasonably dry and mild winter.
While flood damage in some of Chile and South Africa’s vineyards is being assessed, and trucks in their thousands have sat stranded on Andean passes, the Northern Hemisphere has pressed on with its 2026 harvests. Both Italy and California are reporting potentially their earliest in a generation; picking in France (7-14 days) and Spain (7-10 days) is also in advance of a normal timetable. Midsummer holidays have been cancelled as growers move into the vineyards – in Europe, in stiflingly hot daytime temperatures often nearing and sometimes exceeding 40°C and tropical nights of 20°C+.
This month’s Global Market Report provides the latest news from the Northern Hemisphere vineyards – detailing yield performance so far, sugar and acidity levels, and crop-size expectations. The picture is by no means uniform, and indeed the variability across Europe between regions, areas, vineyards and rows persuaded Agreste in France, and Italy’s Assoenologi, Ismea and the Unione Italiana Vini, to postpone or cancel their annual preliminary crop forecasts.
Given the wine sales picture around the world, and some good inventory levels, it is no revelation to state that the grape and bulk wine markets have not responded frenziedly to news emanating from the growing areas. But this month’s report details the activity that has occurred – on what, where, and at what pricing. Paid subscribers have full access to Ciatti’s Global Pricing Grid; August’s is here and includes new 2026-vintage bulk wine pricing in Australia and updated pricing in Spain.
As this month’s Italy page states: “This year’s harvest commenced under something of a cloud, given rising input costs, declining wine sales globally, large 2025 inventories still remaining at some wineries, and many operators in financial peril. The industry is hoping it has reached – or is near – the bottom of its fortunes, and better days lie ahead.” The Northern Hemisphere autumn, in September and October, will help reveal what sort of bulk wine market the industry can expect to see through calendar 2027.
Read the full Ciatti Global Market Report for August
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