EP 344 | AIRED 07/17/2017

Foodservice Crystal Ball Outlook for Twice Frozen Pacific and Atlantic Cod Markets

July 17, 2017 - Welcome to The Tradex Foods "3-Minute Market Insight" This is Kyla Ganton and here is the seafood news for the week of July 17th, 2017.

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--- As production space begins to fill for fall and into the new year, it’s time to take a look at Food Service trends for twice frozen Atlantic and Pacific cod markets. Raw materials for Atlantic Cod have been in the mid $3600s since January 2017, but last week we began to see pricing approaching $3700 per metric tonne as bookings before Chinese new year roll in. Several Chinese vendors are hesitant to book loads past February next year, with the pending decline in Total Allowable Catch for Atlantic Cod in the East. The Barents Sea Atlantic Cod quota was decreased by 20 percent for 2017 from 890 to 712 thousand metric tonnes, divided between Norway and Russia. Steady quota reductions since 2013 are a result of speculation that the stock population is declining after the record total allowable catch for the area was set at 1.02 million metric tonnes. Current pricing on twice frozen Atlantic Cod loins ranges between $3.25 and $3.30 FOB East Coast cold storages. Expect to see pricing firm up again by October, where production space is currently booking for. --- For it’s Pacific counterpart, pricing has been approaching Atlantic Cod pricing since March when supply began to tighten. Raw materials sit currently at $3600 - $3650 per metric tonne in China, up several hundred dollars year-to-year. We do expect these price points to soften after Chinese New Year, as vendors are hoping for a better catch in Russia and Alaska. Domestically, Pacific Cod loin pricing has been on the incline slowly since 2015, and many say this trend could continue. At the end of 2015, twice frozen loin pricing was around $2.75 on the West Coast, approaching $2.95 by mid-2016. 2017 opened with pricing around $3.00 per pound, to where we sit now at $3.05 per pound on twice frozen Pacific Cod loins in Los Angeles. Full load orders are booked through until October, even through to December for some major processing plants. Many North American customers are beginning to take a look at Lenten demand, which we recommend too. Food service expectations for the Fall are twice frozen pricing strengthening on Pacific Cod loins and fillets across North America by five cents by November, book early to avoid inventory gaps in the near year. --- Finally, our TradexLIVE offer of the week is for Sinbad brand Atlantic Cod loins. We have 10,000 pounds of 7oz loins available in Chicago at $3.25 per pound. As always our Sinbad brand comes with a 100% guarantee. Click or tap the icon above to view this offer. ----Thank you for joining me for the Tradex Foods "3-Minute Market Insight" This is Kyla Ganton - “BUY SMART” and “EAT MORE SEAFOOD"

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