Market trend reports are showing canned Pineapple consumption is down approximately 13% in volume and 12.6% in value worldwide compared to same period last year. While Fresh consumption of Pineapple has sky rocketed, especially in the Middle East & China.
US canned pineapple imports have remained stable but the EU canned imports are reported to be down around 30% compared to last year’s imports.
Thailand is still struggling with their raw material supply and is expected to continue thru 2020. Crop shortages are being reported down at least 40% compared to last year.
Philippine typhoon in December has severely impacted the coconut producing regions of the Philippines, consequently coconut prices (along with all edible oils) have risen sharply across all coconut producing countries.
The RBD producing mills in Sri Lanka closed in December (ahead of the holidays) as copra commodity prices rose far above what they could sell the oil for since they mostly sell on the domestic markets. At this moment Refinery mills remain closed as Copra prices remain high and don’t expect them to reopen until end January but will depend on market demand/supply.
We feel the market is at rock bottom for organic and conventional Extra Virgin Olive Oil. There’s zero possibility for lower prices based on current market. There’s only movement is in refined (i.e.: pure) and pomace.
The skipjack price is increasing rapidly. The market is now talking about $1,100 /mt while there is none of any offer from fish supplier. Chinese New Year is also coming by the end of Jan which the largest fish supplier , F.C.F. will stop catching almost 10 days with will be big impact of fish price. Internal views foresees that the fish price in Q1 will be around $1,300/mt for SKJ. Yellowfin situation has nothing much changed. Quota of catching is done in certain areas and need to wait for new quota starting which will be timing after New Year. No improving in Albacore, the price remains close to $4,000/mt.
Current Tuna Market Raw Material Price:
SKJ = US$1100/ton
YFN = US$1500/ton
Albacore = US$4000/ton
Tongol = US$1800/ton
The Euro to US Dollar exchange rate is stable at $1.11
OCEAN FREIGHT With Chinese New Year approaching, ocean freight from Asia increased to below starting Jan 1st, 2020:
- BKK to WC- $150.00 Predicted GRI
- BKK to EC- $200.00 Predicted GRI
- China to WC- $200.00 Predicted GRI
- China to EC- $250.00 Predicted GRI
OTHER MARKET NEWS
SECTION 301 TARIFFS – CHINA
President Donald Trump and The Office of the United States Trade Representative confirmed that the U.S. will be maintaining 25% tariffs on approximately $250 billion of Chinese imports while reducing tariffs on $120 billion in products to 7.5%.
Additional tariff status will remain at 25% for items that we buy from China as only list 4 was reduced from 15% to 7.5%-Lists 1,2 &3 remain at 25% for the foreseeable future.