EP 291 | AIRED 07/05/2016

Speculative Atlantic Cod Pricing Indicates Strengthening Raw Materials

July 5, 2016 - Welcome to The Tradex Foods "3-Minute Market Insight This is Robert Reierson and here is the seafood news for the week of July 5th, 2016.

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--- Speculative projections for Atlantic Cod indicate strengthening raw material pricing and production space for twice frozen products booking up in the Fall. Atlantic Cod continues to come up short with average landed sizes of between 2 and 3 kilograms, which would favour production for 5oz, 6oz, and 7oz loins. For Buyers preferring 3oz and 4oz loins for great centre-of-the-plate coverage, the current catch sizes create extended lead times for twice frozen production. Atlantic Cod raw materials have hovered around $3,300 per metric tonne but suppliers are seeing offers at $3,500 already. For the consumer, this means a 20 cent price hike could come to North America and to the E.U. Most Atlantic Cod value added production is destined for the European Main Ports at $3.50 / LB for loins, comparable at $3.30 / lb in Boston. --- Further speculation for rising prices stems from recent quota cuts announced for the Barents Sea. The International Council for the Exploration of the Seas has advised a 10 percent quota reduction to 805,000 metric tonnes for 2017. All things considered, North American buyers should look at booking orders through the Fall to secure pricing before the market shifts. --- As another whitefish option, our TradexLIVE Offer of the week is for 8-10oz Haddock Fillets. These are IQF, skinless, and packed 1x10lb in our Premium Sinbad Brand. We have 3,500 lbs available for $2.50 / lb FOB Boston. Click or tap the icon above to view this offer. --- Also of note in the Cod market is domestic Pacific Cod inventories. Over to you Kyla. --- Pacific Cod inventories are all over the board right now, but one common theme is stronger pricing this year compared to last. Sharp pricing on LTL inventories of Shatterpack fillets are available at $3.55 / lb for 8-16s, $3.80 for 16-32s and 32 ups. Last year we saw pricing on larger fillets closer to $3.35 / lb. The directed fishery by trawlers and pot gear is closed until September, but it's undetermined whether that 6 week fishery will lead processors to produce H&G for export to Asia and Europe, or if we will see more Fillets available in the fall. Back to you Rob. --- Thanks Kyla. ----Thank you for joining me for the Tradex Foods "3-Minute Market Insight" This is Robert Reierson - “BUY SMART” and “EAT MORE SEAFOOD"

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