TUNA
SKJ price has now increased and currently trade at $1,700/MT. $300/MT increase since November. This is mainly due to bad catching and logistic disruption as there is a delay in incoming fish. ALB price’s movement is between $3,400/MT – $3,600/MT.
Current Tuna Market Raw Material Price:
SKJ = US$1,700-1800/ton
YFN = US$2,500/ton very limited supply
Albacore = US$3,400-$3,600/ton limited supply
Tongol = US$2,200/ton short supply
OLIVE OIL
The prices of Olive Oil from Spain remain rather firm. The crop is going at a good pace, and it looks like the forecast of Olive Oil production is going to be surpassed. Still, the most significant factor affecting the price is the shortage of rain in Spain. Whether there will be rain in the next couple of months will decide if the price will go up or down. Farmers are being cautious and tend to avoid long term commitments as their Olive Oil could become more valuable. After the month of April, the market is expected to settle and set the price for the next season.
PINEAPPLE
After New Year, Thai pineapple factories were surprised with a drop in the supply which led to the raw material price increasing to over 7.0 THB/kg. Earlier this month supply was 4-5,000 metric tons per day for the whole country, as in December, but a substantial decrease kicked in and now max 4,000 metric tons is available per day. This situation is expected to continue during February. Factories have limited options to offer, some are holding offers for a longer period ahead. Summer crop output remains unclear. March would be a good moment to recheck the situation again.
MANDARIN
The mandarin season has ended. Cost is now 15% higher than the beginning of the season due to extreme shortage, factories are running under capacity and cannot get enough supply.
MUSHROOMS
Increased demand coupled with a decrease in supply and challenges in the supply chain will increase prices for 2022 for all origins.
The mushroom industry has not been able to escape the crisis of the global supply chain which has affected all stages of production from raw materials, labor, and packaging to transportation. Mushroom suppliers are faced with unprecedented increases in tin plate, cardboard, shrink wrap, labels, pallets, transport, compost and ingredients for mushroom growing and canning. Mushroom growers are also facing challenges such as risks related to crop diseases, abnormal temperature changes and extreme weather events. These could reduce growth opportunities.
Sustained demand due to the continued impact of the Corona virus and outbreaks of new variants will also impact pricing.
COCONUT
Pricing is at a historic high never reached before. Raw materials and packaging costs continue to rise and impact 2022 pricing for all origins. Although packaging price increases have a greater impact on over-all pricing than raw materials, the largest impact is from freight costs.
Freight space out of Vietnam and Thailand is a little easier to come by than out of the Philippines.
Demand for coconut milk and cream continues to increase from the plant-based food industry and consumer desire for vegan options. Coconut-based ice creams, yogurts and milks all continue to be strong.
OTHER NEWS
THE EURO
EUR/USD continues to hold on to the 1.13 mark this month. The short-term outlook of the EURO against the U.S. dollar becomes unclear and hard to predict for the time being. In terms of the U.S. dollar, there is an expectation that the Fed will raise interest rates in the second half this year. Recent data also indicated a strong outlook of inflation going forward. With a geopolitical risk in Ukraine continuing to intensify, and a possible impact on oil pricing, bank analysts believe government bonds and currencies will remain volatile. If the situation is resolved in the near future, we could see a potential EURO fall at year-end.
OCEAN FREIGHT AND SUPPLY CHAIN
2022 is looking to be as equally challenging as 2021. Rates remain at all-time highs; many ships are tied up at anchor reducing available capacity and demand continues to outpace lift. The market remains congested with strong demand and carriers continue to implement blank sailings and omitted ports of call. Blank sailings and omissions will continue as carriers look to maximize asset deployment and turn times. Schedule reliability is very low.
Congestion is still high following the Chinese New Year holiday. Carriers are still shipping goods produced before the holiday closures. Many vessels are only offering space at premium rates.
While there is some relief at ports outside of LA, there is continued capacity shortages of inland routes to Chicago, Memphis, Dallas and Kansas City. This is due to vessel congestion at the ports and sluggish terminals.
