The issues tuna fishing companies are having with coronavirus prevention measures is driving up the prices for skipjack in hubs in Thailand and Ecuador, as well as yellowfin for delivery to Spain, sources told Undercurrent News.
On top of the COVID-19 issues for catches, two of the most significant tuna supply fisheries have partial seasonal closures in place.
The closure on catching on fish aggregation devices (FADs) in the Western and Central Pacific Ocean (WCPO) runs from July 1 for the bulk of the fleet but also remains in place for some countries in the region in October. Then, on July 29, a big chunk of the eastern Pacific Ocean (EPO) fleet will tie-up as part of one of two annual closed fishing periods in that area.
As a result, prices for whole-round skipjack delivered to the hub of Bangkok, Thailand, have risen to $1,400-$1,450 per-metric-ton for delivery in early August, compared to $1,200/t for July deliveries, sources said.
In Manta, Ecuador, the leading Latin American tuna processing hub, skipjack prices have firmed from around $1,200/t in late June to $1,400-$1,450/t, they said. One source also said $1,500/t has just been done in Ecuador, on recent landings.
Then, (brine-frozen, 10-15 kilogram) yellowfin prices delivered to Spain are up around €50-€100/t month-on-month to €2,200/t, sources said. Although the demand is soft, fishing is hampered by COVID-19 prevention measures and so supply is down, they said.
"The price of tuna has moved up due to low catches for seiners at sea. Many boats are delayed in going out due to COVID issues with crew and quarantines," a senior executive with an Asian fishing and processing company told Undercurrent.
For skipjack for Bangkok, fishermen are asking for $1,500/t, he said. "I think this will happen by this week or next."
Bangkok is "$1,400-$1,450/t today but surely rising", said a second Asia source, with a large trading company. "There's poor fishing everywhere, then the FAD [fish aggregating device] closure in Westpac [WCPO], the closure in the Eastpac [EPO]. I can see prices going higher. In Manta, it's the same trend."
"Canneries [in Bangkok] seem resigned to the fact that they would have to pay $1,450/t for deliveries later in August, but traders want to talk at that level now," said a third source, a US-based tuna sector executive.
There's also some divide on where prices are going next.
"I've heard talk that prices move to $1,600-$1,650/t in September as western Pacific fishing is slow in both the western and eastern area of the western Pacific," said the third source.
"I believe Manta will go up but by how much will depend on fishing," said a fourth source, with a cannery in Ecuador.
According to the third source, the first tranche of the Inter-American Tropical Tuna Commission, which starts on July 29 for 72 days, will see 44% of the fleet landing in Ecuador tied up.
"Although there will be a bit of a rush of fish as these first boats have come in to tie up, this will dry up and fishing isn't great," he told Undercurrent.
A fifth source, with another prominent Asian trader, sees prices dropping in the future in the WCPO, he said.
"For the WCPO, we see the price slightly moving up from the current price level, due to the slow catching. However, once the fishing picks up again, the price will drop sharply," he told Undercurrent.
With regards to yellowfin, sources were also unsure of the outlook. The prices had nosedived €500-550/t in early June, before recovering to €2,100/t. The cause of the dive is the weak market in foodservice created by COVID-19-related closures. The current level of €2,200/t is much more demand than supply-driven, sources told Undercurrent.
"Catching volume is down, but so is the market. COVID-19 impacts still prevail for the yellowfin market," said the fifth source.
"The market is low, low, low," said a sixth source, with a significant European fishing firm.
"The canned demand is dull everywhere for retail and also for foodservice," he told Undercurrent.
This source was not optimistic about tuna prices going up much more.
"I don't feel that the prices are going to increase further. Although the sellers desperately need higher prices, because of all extra costs for the crew changes in the COVID period," he told Undercurrent.
July 29, 2020 at 12:14AM
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COVID-19 issues for tuna catchers see skipjack prices rise fast, yellowfin edge up - Undercurrent News
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