Thai shrimp price rises expected to continue until end of year: Undercurrentnews
María Feijóo: UnderCurrentNews
Average spot prices for head-on, shell-on (HOSO) vannamei shrimp in Thailand have seen another rise across all sizes in week 43, according to data from the Talay Thai wholesale shrimp market provided to Undercurrent News.
After coming to a standstill at their lowest point since 2018 a few weeks before, prices for 60-count shrimp have risen again by THB 2.50 to THB 145/kg during this period, as did prices for 70- and 80-count vannamei to THB 140/kg and THB 127.50/kg.
In dollars — as shown in the second chart below, which is also available on the Undercurrent prices portal — prices were $4.36/kg for 60-count shrimp; $4.21/kg for 70-counts; and $3.84/kg for 80-counts.
According to frozen seafood supplier Siam Canadian Group’s latest market update, further increases in shrimp raw material prices are expected to be seen until the end of 2021.
“In the last few weeks, HOSO shrimp prices have already increased by 10% for 100count shrimp; 5% for 90 counts; 9% for 80 counts; and 4% for 60 counts,” the report states.
Moreover, most farms have already finished harvesting, so shrimp supply is expected to drop, the update adds. “Also, Thailand is being hit by several monsoon storms and most areas in the country are on constant alert for floods.”
According to the report, the government has already advised the population to prepare for massive floods, which could see farmers delay their new crops until as late as February 2022.
“Bangkok has been already affected by floods and will be on red alert for the coming days. Delays in cropping will take place,” it said. “White feces and white spot diseases will continue to be an issue, especially now with heavy rains.”
Additionally, freight costs continue skyrocketing, which is expected to last until summer 2022 at the soonest.
“There is no sign of improvements since availability is still minimal. Congestion is still a big problem, with exporters facing detention and demurrage charges due to it,” the update adds.
“We hope the situation to improve after November once bottleneck at ports has been resolved. However, we don’t see the overall problem improving until summer.”