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October 30, 2014

Ecuador

Shrimp Prices Slightly Lower

 

Anecdotal reports indicate that Chinese buyers have slowed down their Ecuadorian shrimp purchases ahead of The China Fisheries and Seafood Show, which is being held in Qingdao this year.  At the same time, overall demand for Latin American shrimp was reported quiet, and weaker prices have been noted in the USA market for mid-to-smaller-sized product from the region for the first time in weeks.

 

Earlier this week Urner Barry quotations for 31-35 and smaller sized shrimp up to 51-60s out of Latin America fell between one and two percent, or $0.07 and $0.10 compared to last week’s prices.

 

While the price declines were relatively small, they are the first to occur in this market since at least September, dependent on size.  For 31-35s and 36-40s this week’s price drop is the first for these items since June and July, while 51-60 prices recorded price declines in August.

 

It is unclear what caused this week’s price drop and if it is the start to a longer-term market trend.  Anecdotally, traders have reported a slowdown in Chinese purchases.

 

This year, Ecuadorian shrimp sales to China have soared. Through September shrimp shipments into Asia are nearly double what they were during this time in 2013.  This resulted in a shift in the market share for Ecuadorian exports that now shows equal distribution among the USA, European and Chinese markets.

 

At the same time October is a notoriously slow time for seafood demand in general.  The return of back-to-school schedules, with no major holidays between Labor Day and Thanksgiving tends to cause a decline in dining out, where seafood is still primarily consumed in the USA.

 

But the Ecuadorians expect to continue to produce shrimp at a blistering pace.  Total exports through September are up 28.5 percent to their major markets with expectations that production will finish the year up similarly.

 

We could get a better idea of Chinese demand for Latin American shrimp next week when the 2014 China Fisheries and Seafood Expo starts on November 4, 2014.

 

So with more Ecuadorian shrimp likely to hit the global market for the rest of the year amid some quite demand, industry eyes will be on China at next week’s Expo where we could get a better idea of Chinese buyers’ positions for the months ahead.

 

Source: Seafood.com (an online, subscription-based, fisheries news service).  Editor and Publisher, John Sackton (phone 1-781-861-1441, email jsackton@seafood.com).  Ecuadorian Shrimp Prices Fall a Bit as Chinese Buying Slows Ahead of Qingdao Show.  Michael Ramsingh (phone 1-732-240-5330, email michaelramsingh@seafood.com).  October 30, 2014.

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