Higher global fuel costs and low catching have pushed suppliers to move up the value for whole round frozen skipjack tuna. The latest news out of Bangkok is that market has moved up and raw material confirmed purchased at $1,400, this is a 12% increase from February price at $1,250. Yellowfin and Albacore prices are holding steady while Tongol is limited in supply.
Current Tuna Market Raw Material Price:
SKJ = US$1,400/ton
YFN = US$1,700/ton
Albacore = US$3,200/ton
Tongol = US$2,000/ton (limited supply)
Thai green and yellow jackfruit volumes are predicted to be reduced this coming season due to drought. The farmers will thin the small young fruits in order to maintain good fruit quality and the size of young fruits that they cut will be smaller than usual.
The needed thinning will yield less quantity of the green jack fruit than normal because the farmer needs to keep a specific quantity of good fruit to become ripe (yellow).
Currently, the crop of young green jackfruit will be available till mid of April. After this the crop will be changed to yellow (ripened) jackfruit & will be available until June.
Prices are expected to increase this season vs. last season due to the reduced raw material volume & overall increased operation costs.
Continued growth in the Pickle market is expected through 2021. Although the market includes a wide range of pickled vegetables, fruits, and olives; pickled cucumbers and olives are the most popular in the US, which is one of the biggest consumers. Majority of the growth is expected in new flavors and organic products. Main drivers of the growing market are increased preferences for different dishes and flavors, and perceived health benefits such as an antioxidant, probiotic, and source of natural nutrients. For these same reasons, there is an increased need in Asia, Middle East and Africa which will also offer huge growth for the global pickle market.
The water chestnut season has abruptly stopped due to a severe lack of raw material supply. Demand is high and prices are extreme compared to initial season prices. Many suppliers are struggling to fulfill their existing canned contracts and are not taking any new bookings. New shipments may not be available until Mid-Late December 2021.
Actual crop for March (Summer Pack) is 15-20% less than expected while the price is increasing from 7.50 to 9.00 THB per kg. Prices are estimated to remain the same from March to September and could potentially reduce when available tonnage is increased in October. The new end of the year estimate for available raw material has reduced from 1.2 million vs the 1.35 million tons that was estimated earlier this year.
There continues to be an issue with high nitrate content leftover on fruit due to farmers cutting unripe fruit. Situation expected to improve during winter crop.
PRODUCE FROM PERU
Late last year Peru experienced social unrest in response to illegal employment practices and working conditions in the agriculture industry. As a consequence, the Peruvian agricultural industry is going through a significant change that has resulted in reforms to the federal government’s minimum agricultural wage legislation.
This new regulatory framework has resulted in a new bonus for field and facility workers equivalent to 30% of the minimum wage which is putting upward pressure on Peruvian packers’ production costs. Despite these challenges, many packers continue to invest in processing automation technologies and the efficiency of their food production while keeping their employees safe and supporting local communities.
Additionally, costs for packaging have increased due to shortages of local raw materials, so the suppliers are having to import some packaging materials to bridge the local supply gap.
All these issues are causing the prices to increase for the new 2021-2022 season for most items imported out of Peru.
In Peru due to the weather changes, the 2021 crop of olives has 35% lesser volume than last year, but the quality of the fruit is predicted to be better.
The Philippines continues to struggle to make up time on shipping out old orders. The current back log of orders is ACME MARKET UPDATE MARCH/APRIL 2021 estimated to be at least 2 months behind & estimated first shipment on any new booking is predicted to be July/August.
Indonesian supply seems to be strong at this time, but the available capacities are quickly being taken up by those who cannot get timely shipments from the Philippines.
Sri Lankan prices have dropped slightly due to lack of current demand, but the suppliers are predicting an increase in April with the upcoming holidays as farmers take time off, there will be more demand and the supply of raw nuts will be low – so prices are expected to firm up again.
The EUR/USD exchange rate continues to lower. This week it hit at 4-month low at $1.176. The USD continues to strengthen as the US economic outlook brightens with jobless claims falling to a 1 year low this week and President Bidens aggressive double vaccination rollout plan, both support optimism in the dollar.
OCEAN FREIGHT AND SUPPLY CHAIN
Congestion worldwide remains at an all-time high & is predicted to last past this summer. Bottlenecks at the ports of LA and Long Beach have eased slightly in recent weeks. There are approx. 20 vessels waiting vs the 40 vessels that we waiting to berth earlier this year.
East Coast ports are suffering heavy congestion and adding to the pressure one of the main container storage yards servicing the New York & NJ terminals has abruptly closed. This has forced truckers to find alternate locations to store.
The surge in e-commerce has significantly increased the volume of incoming cargo. It is predicted there are 20% more vessels coming in over the last month, with six to a dozen vessels in the San Francisco Bay waiting to dock for up to seven days.”
Adding to the pressure there is a vessel that is currently blocking both directions of the Suez Canal. Efforts are being made to refloat the vessel and is now creating long ques for both north & south passages. This in turn will have an impact on the delivery schedules.
- BKK to WC – $3,325/20’
- BKK to EC – $5,450/20’
- China to WC – $3,375/20’
- China to EC – $5,450/20’