Building on our previous analysis in Tip #103, the vannamei shrimp market is undergoing significant changes as we approach the harvest period in Ecuador. With recent developments, both in farm gate raw material prices and final product prices, the market is showing signs of a complex but definitive shift.
Recent price trends and demand fluctuations:
Since our last update, there’s been a notable increase in shrimp prices at the farm gate, reflecting in the final product prices as well. This rise in prices aligns with the increased demand from European clients, contrasted with a more cautious approach from Chinese buyers who seem reluctant to match the price rise.
Market perception and the “aguaje” (harvest) effect:
The awaited “aguaje” (harvest) period is expected later this week. Traditionally, the harvest period influences the market significantly. Our market analysis suggests that prices are likely to remain steady during this period. This stability, however, exists in a global market where supply and demand are still trying to reach a balance.
Chinese market dynamics: a subtle shift in focus:
While European demand is boosting the price of shrimp worldwide, the cautious approach of Chinese buyers towards higher shrimp prices demands attention. This reluctance might not be limited to China and we’re seeing other markets adopting the same attitude, hinting at different behaviors of regional markets. The response of the Chinese market in the upcoming weeks will be crucial, setting the tone for market trends following harvest.
Conclusion:
The vannamei shrimp market is at a turning point as we near the harvest. With rising prices and mixed demand signals from key markets, stakeholders need to maintain a careful watch. The market’s direction in the coming weeks will provide valuable insights into post-aguaje trends and potential strategies for purchasing.
Stay tuned to Vannamei Tips for continued insights and guidance in these dynamic times.