Thaifex 2016 blog: North American buyers coming in for Thai shrimp : May 25, 2016
Undercurrent News is blogging live from the Thaifex: World of Food Asia trade show, held in Bangkok, Thailand from May 25-29.
North American buyers coming in for Thai shrimp
Thai shrimp raw material prices are firming from a low level, as buyers in North America are said to be coming in.
Raw material prices were at THB 135-140 per kilogram for 70 per kilogram size shrimp at the start of May, but are at THB 150-155/kg for the week of May 16-21.
“Starting from early May, several buyers in US and Canada have been placing several, decent volume, orders in Indonesia and Thailand,” Satasap Viriyanantawani — general manager for the Thai business of Siam Canadian Group, an Asian frozen seafood supplier headquartered in Bangkok, told Undercurrent News.
“The buyers were waiting till they were confident price should already hit or get closest possible to the bottom then they all were pulling their trigger in the same time,” he said.
“Now prices are moving up every day. Some buyers, who missed their chance to lock-in their program at the cheapest price, are trying very hard to confirm the best possible and available price in either Indonesia or Thailand and certain items can also be from India,” he said.
The majority of these orders are covering shipments between now through the end of July.
“Some supermarkets may cover a longer period. In fact, some buyers are still currently negotiating with shrimp packers on new program businesses,” he said.
These “decent volumes” are generating immediate stronger demand.
This is “shaking the market” and shrimp prices in both Indonesia and Thailand have been firming, as a result, said Viriyanantawani.
“Farmers may not be happy with prices with prices during March and April, but I believe they should be starting to be happy with current prices,” he said. “They should be happier, as prices should continue to move up until the majority of current orders are completed. I expect somewhere in July.”
Prices should not come down anytime soon, he said. That is, “unless India can suddenly be competitive”.