Source: Globefish

According to the Globefish Report of last week, the realignment of relative raw material prices that started in July continued in August. The price of tuna on the Bangkok market is now lower than in Ecuador, thereby returning to normal patterns. The price of main size whole round skipjack in Ecuador is USD 1.950/ton and in Bangkok USD1.850/ton (at this moment already hitting the USD 1700/ton mark; Atuna.com).

The fishing ban in the Eastern Tropical Pacific reduced supplies to the plants in Ecuador and prompted the importation of significant quantities of tuna from the Western and Central Pacific.

The report continues: Six carriers with over 20.000 tons of frozen tuna were shipped to Latin America from the Western Pacific during August and another two carriers were shipped to the Indian Ocean where poor fishing contributed to desperate purchasing decisions by the tuna processors in Mauritius.

When the Euro was trading at close to USD1.60 to the Euro, the price of skipjack reached €1220/ton in Seychelles. In early September, skipjack catches in Indian Ocean improved significantly pushing the prices to €1120/ton.

Globefish put emphasis on the 10% decline in the value of the Euro against the USD. The combination of the decline in the price in Euros and the USD/Euro exchange rate translates into a 15% decline in the USD cost of skipjack in the Indian Ocean.

Meantime, the price of cooked and frozen tuna loins in Europe continued to increase due to the increasing USD cost of raw material in Ecuador. Double cleaned yellowfin loins were sold at USD 7.950/ton, a record price level.

A high percentage of yellowfin caught by Asian purse seiner fleets operating in the Western and Central Pacific increased the supply of yellowfin and lowered the market price of whole round yellowfin in Europe to €1.650/ton (origin Philippines).

There is limited demand for whole round yellowfin in Europe as the major brands rely primarily on imported yellowfin loins due to labor cost concerns.