Another price increase for skipjack tuna raw material was recorded in both world tuna hubs, Bangkok and Manta, with rates in a continuous rise since December last year. The market price in Bangkok reached USD1,500-1,600/ tonne in early March. This is another 15% increase since last month. A significant number of local tuna canneries are already purchasing raw material at that level. Prices of Long Line and Pole & Line Albacore tuna are not coming down and supply is still very limited.
Current Tuna Market Raw Material Price:
SKJ = US$1,600/ton
YFN = US$1,700/ton
Albacore = US$4,000/ton
Tongol = US$1,700/ton
The market remains stable in terms of price. The harvest is complete with major stocks available throughout the Mediterranean producing regions.
However, good quality Extra Virgin Olive Oil remains an issue. The coronavirus has impacted the sectors in many ways. There has been increasing public domestic demand, and factories are enacting contingency plans to maintain operations. So far transportation and logistics remain normal.
Most packers in China are back to normal operation except some packers in Wuhan. They are still waiting for further notice from the government about when they can resume back to work. A market report by Rotterdam Trader Catz International forecasts rises in price for dehydrated apples and banana chips especially due to labor shortages.
Thai pineapple production for February was estimated at 82,000 tonnes, far less than last year’s crop of 125,000-130,000. FoodNews reports that price increases are putting pressure on small and medium canneries. Prices are expected to continue to rise, especially with the rapid growth in demand from China.
The Chinese harvest is about to begin and will last through May, but no softening of price is expected until the next harvest in the fall is over, at the soonest.
According to Manual Michel, the executive director of the National Mango Board, Mexico’s share of the US market is expected to increase through the spring and summer. He reports that although Peru’s shipments are up 61% over last year, Mexico will eventually see a greater total volume. Total consumption by American consumers has risen 68% since 2005 and should continue to rise 2-3% this year.
After the European Central Bank announced on Wednesday a €750 Billion bond purchase scheme the Euro fell to $1.07. On Wednesday ECB President Christine Lagarde said “There are no limits to our commitment to the euro. We are determined to use the full potential of our tools, within our mandate.”
Ocean freight from Asia is relatively stable compared to previous months, seeing only small increases or decreases:
- BKK to WC- $1,200/20’ (-$50)
- BKK to EC- $2,200-$2,300/20’ (+$100)
- China to WC- $1,300-$1,350/20’ (+$100)
- China to EC- $2,300-$2,700/20’ (+$100)
OTHER MARKET NEWS
CORONAVIRUS OUTBREAK CONTINUES TO STRONGLY AFFECT INTERNATIONAL SHIPPING
With exception of the Port of Houston’s temporary shutdown on Thursday, American and European ports remain open, albeit with some operating with reduced hours or capacity.
Chinese ports saw significant slowdown in January and February, but the situation is improving and the backlog of containers waiting to be shipped should start clearing. Availability of trucking is still low in China, but is expected to recover. Overall, Lars Jensen of SeaIntelligence Consulting predicts total TEUs shipped this year to be down 10% compared to last year.