Summer pineapple price are unlikely to decrease. Although it will be the biggest crop of the year, the summer harvest will be less than 6000 mt/day, which is still not enough to feed every factory. Prices may continue to increase at least until May, soften slightly, then shoot back up in the 2nd half of the year, which will be the most critical period. Last year’s total pineapple supply that went to factories was less than 1 million tons and this year it is expected to be the same, if not less, than last year.
During the last few years the main producers in the European zone, Holland and France, underwent a reduction of production due to a soft market demand and a low-price trend. The European mushroom sector is experiencing hard times. Prices are low and many producers may not survive.
The future for mushrooms seems a little brighter considering the following:
- It is a product in line with current trends being an alternative to meat consumption;
- It is a product with low calorie content;
- It is an industry perfect for adapting to sustainability requirements.
The crop in Peru is going well: production is done in the south of the country for the 1st semester of the year. New season pricing should become available in April-May. The new season in the north of the country will start in July and go through November.
The crop in Peru started about 2 weeks ago and looks good. Crop is mostly sold out for main packers through the second semester season starting in September.
Market prices are stable at rock bottom due to large carryover stocks with huge crop harvested throughout Mediterranean growing regions. Potential price increase for good quality EVOO. Market players awaiting USTR decision expected by February 15th.
Even though no deals have been concluded in February yet, traders have started offering $1,300/MT for Skipjack raw material.
Once there is more insight into how much skipjack is expected to reach the Bangkok market two months from now, we will assess if this upward trend is here to stay and if the value will continue to climb.
Long Line Albacore catch has not improved as Chinese boats are not going out for fishing; fortunately, prices are unchanged since last update, but supply has remained scarce, which may require time for outsourcing.
P&L albacore is not any better than it was at this time last year, due to limited supply: do not expect price to soften from any oceans.
Current Tuna Market Raw Material Price:
SKJ = US$1200-1300/ton
YFN = US$1700/ton
Albacore = US$4000/ton
Tongol = US$1700/ton
The capital markets indicate the Euro slipping below the $1.09 is due to EU & Germany’s recession being far from over. Germany, the largest EU economy, continued to plunge in January, which indicates the Euro Zone will remain sluggish throughout the first quarter of 2020. Brexit is also keeping pressure on the Euro, and bank analysts predict the EURO may fall as low as $1.08, as long as the US economy remains strong throughout the first quarter.
Ocean freight from Asia is stable compared with January 2020:
- BKK to WC- $1250/20’
- BKK to EC- $2100-2200/20’
- China to WC- $1200-1250/20’
- China to EC- $2200-2600/20’
OTHER MARKET NEWS
CORONAVIRUS OUTBREAK DELAYING NORMAL POST-CNY TRANS-PAC FLOW TO MARCH
Logistics experts predicted delays in resuming China’s factory production and inland transportation supply chains due to the novel coronavirus outbreak, which will push the return of normal post-Lunar New Year trans-Pacific cargo flows to late February or early March. Although China’s government initially extended the Lunar New Year factory shutdowns until Feb. 3 for much of China and Feb. 10 for the Wuhan-Hubei province region in a bid to stem the spread of the virus, sources indicated those deadlines have slipped.
Trans-Pacific services from Asia to the West Coast will be the hardest hit by the blank sailings. Global Port Tracker estimated that containerized imports at US ports in January declined 3.8 percent from January 2019, and will fall 12.9 percent in February and 9.5 percent in March year over year. Global Port Tracker projected that year-over-year increases in imports will resume in April, but the first half of 2020 will still be down 0.4 percent from the first six months of 2019.