SKJ price is stable at $1,500/MT and there is no sign for decrease as the demand reported by Asian suppliers including Thailand remains at a high level.
One supplier foresees that the fish price will be on an upward trend but others think the market may soften in the next few months. At this point no one can really predict what the market will really do as it all depends on supply and demand.
Long Line Albacore pricing has dropped slightly to $3,700- $3,800/mt, previously was $4,000/mt – catch volume remains limited.
Pole & Line Albacore is still in extremely short supply and pricing maintains at $4,800/MT. North Pacific Albacore season is predicted to start in July & the hope is raw material will be less limited.
Current Tuna Market Raw Material Price:
SKJ = US$1,500/ton
YFN = US$2,000/ton
Albacore = US$3,800/ton
Tongol = US$1,700/ton
Greece has been under lockdown since March and is anticipating by early May business will slowly return to normal.
It is reported that due to high demand on canned fruits there are no retail carryover stock left from the 2019 packing season, but there is an excess of Foodservice/A10 pack.
Foodservice size is in excess due to the extra 25% tariff applied to US imports in October 2019 and now the Corona Virus has affected shipments for A10 Peaches.
It is predicted the 2020 demand shall be the same as previous years, but it could be more than usual as consumers stock up on canned items due to lockdown. Labor costs are expected to be higher this year, apart from that it is estimated that due to the excess stock in FS size) prices for the FS will be lower than last year & retail sizes are predicted to be at same levels possibly higher due to increase in demand vs last year,
New pack for Peaches usually starts in July and is being reported that weather issues in March has affected some growing areas in Greece but not all. China’s 2020 Peach crop is looking to be good so far barring any severe spring storms.
The ongoing price increases are likely to be motivated by ongoing drought, which is resulting in a challenging season for pineapple growers and canneries in order to get adequate raw material volumes.
Also, there is the recent spike in demand from top markets the US and Germany amid Covid-19 panic buying. Latest US customs data update in March shows shipments to the latter totaling 10,600 tonnes this volume can be altered in the following days as customs figures are updated.
Thai canned pineapple prices of 6/A10 Choice quality slices and chunks in natural juice are around USD25 per carton FOB, and Choice tidbits in natural juice is around USD23.00 per carton FOB. Prices of 24/20oz Choice quality slices and chunks is around USD20.00, and Tidbits in natural juice is USD18.00 per carton FOB. Standard quality slices and chunks would rate at around USD18.00 per carton (USD14-15 per carton in early 2019).
Sri Lanka desiccated coconut: Most of the mills in this origin are closed due to lockdown. The government is trying to facilitate factories in having the right permits to restart production & is a very slow process one trader remarked. Even though coconut producing factories are able to restart, the suppliers of packing materials, transport/shipping companies as well as government offices are not fully operational and has had its effect on the production and shipment possibilities of the coconut producing companies. There are a lot of elements which are making it more difficult for producers to produce and ship their goods.
The Philippines is looking to reopen factories by mid-May, but is also experiencing challenges on reopening due to limited raw materials, staff shortages & transportation issues.
The Euro to US Dollar exchange rate is stable at $1.0869 amongst concerns about the economic chaos due to the Corona Virus crisis.
OTHER MARKET NEWS
EMERGING MARKETS IN FOREIGN EXCHANGE
As risk sentiment continues to remain buoyant every emerging market currency is gaining against the greenback, with the worst performers simply unchanged ahead of their respective opens in Latin America. As Europe gets more serious about rolling out plant to ease lockdown on a nation-by-nation basis hope for a speedier economic recovery is boosting volatile emerging markets. In Asia, some of the nations that battles early outbreaks of the coronavirus are looking towards beginning to re-open themselves, with Thailand and Philippines set to lead the charge with modest de-restrictions in mid-May.
Ocean freight from Asia is still relatively stable compared to previous months, seeing only small increases or decreases:
- BKK to WC- $1,050/20’
- BKK to EC- $1,700-$2,025/20’
- China to WC- $1,200-$1,280/20’
- China to EC- $2,120-$2,720/20’
NEW ITEMS HOT ON THE TREND
- Plant Based Tuna
- Milk Alternatives – Hemp, Coconut, Rice & Oat Milks