EP 189 | AIRED 06/30/2014
Pacific & Atlantic Cod Pricing Peculiarity, Poor Sockeye Salmon Season
June 30th, 2014 - This week in the Tradex Foods 3-Minute Market Insight, Rob Reierson discusses Pacific & Atlantic Cod Pricing Peculiarity, Poor Sockeye Salmon Season...
--- The "B" Season for Pacific Cod is coming up on September 1st and processors in China are hoping for better returns than the "A" season. Supply was short this season, resulting in low raw material inventory as well as finished product. Cod accounted for only 13 percent of the total volume of fish caught in Russian seas for the first four months of 2014, and the fish has been small.
The 2014 Bering Sea and Aleutian Islands TAC was set at 252,894 metric tonnes, on par with last year's TAC of 260,000 metric tonnes. Fishermen in the BSAI region have caught 77,593 mt as of June 21st.
Pricing for Pacific Cod has increased by $600-800 per mt over last year. Prices for H&G P. Cod ex warehouse Vladivostok in June are $1.13 /lb for small sizing, $1.22 for medium sizes, and $1.13 for the large sizes. This is over 30 percent higher than prices this time last year. East Coast USA prices for Pacific Cod however have stayed relatively even at $1.55 to $1.60 /lb.
Atlantic Cod pricing continues to rise because of the quota and processors are worried that pricing for Pacific Cod will follow this pattern too, even without quota issues. According to Chinese suppliers, outlook for the North American and European markets is bleak for value added products and this poor market demand will also affect pricing on B season, conflicting opinions for sure. We will update you once the season starts.
--- Moving onto salmon, the 2014 troll chum salmon fishery has been extremely poor although it is relatively new. The fish is coming in larger than previous seasons, about 10 to 12 pounds. This correlates with the low pink salmon season, providing less competition for food that the chums eat.
By this time last year, processors had produced about 1.1 million lbs of troll chums, but have only caught 20,000 lbs to date this season.
Prices for Prince William Sound Net Chums FOB Alaska are at $1.70 /lb for the 6/9s, $1.65 /lb for the 4/6s, and $1.40 for the 2/4s. False Pass Net Chums are selling at $2.20 to $2.30 for 6/9s delvered Seattle, $1.80 to $1.90 for 4/6s, and $1.60 to $1.70 for 2/4s.
--- Finally, unsual fish sizes have also affected the sockeye salmon fishery in British Columbia. Gill net fishing in Barkley Sound has been poor for sockeye salmon this season, causing confusion for fishermen. Fish are weighing 3.3 lbs on average for the round, allowing them to swim right through the gill nets, which explains the low catch.
---Thanks for joining me for the Tradex Foods
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