The market moved sharply higher even on large Indian whites which are in production with imports heavy as news spread of likely disease driven production issues in Mexican farmed shrimp.
Although it was anticipated by some that Thailand production might improve in the 3rd quarter, it appears that improvements in production and imports are at least delayed and shortfalls may be worse than initially considered. So despite the better import figures from the top supplying countries with the glaring exception of Thailand, the shrimp market has become a sellers’ market.
Beginning in early July the focus of the market gravitated mostly towards sourcing product as buyers looked to acquire product for both immediate needs and 4th quarter holiday needs amid the short situation that has developed. However, the flurry in buying activity has prompted sellers to seek further premiums in an attempt to preserve their own supplies and forced overseas offerings higher amid renewed buying pressure.
The result is that premiums continue to develop throughout the entire shrimp complex. On-hand supplies range barely adequate to short with many holes developing in inventories; and replacement offerings, when available, are stronger. Remaining inventories in the U.S. are being closely held, and offerings trend higher.
Replacement offerings continue to trend higher; however, reports are that in many cases overseas packers have temporarily pulled off the market and limit commitments as they wait for the spot market to settle. With the advancing price of raw material some packers have struggled to fill commitments.