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July 8, 2015

Ecuador

Prices Drop on Weak Demand from USA, China

 

Strong Ecuadorian shrimp supply coupled with slow demand from the USA and China have caused prices to drop.

 

USA buyers are still holding back on making big commitments on shrimp, while Ecuador’s volumes “are strong” this year, a USA importer said.  He estimated Ecuadorian shrimp production for last year at about 281,000 metric tons (620 million pounds), while production in 2015 is projected to reach 317,000 tons (700 million pounds), up 12.8% or 36,000 tons year-on-year.

 

As prices increased, an executive with a major shrimp company said Ecuadorian shrimp farmers increased their stocking densities, but added that farmers are now scaling back on stocking densities, realizing that they may have made a mistake.

 

Ecuadorian shrimp prices have been under pressure as imports into China via Vietnam — the so-called “backdoor” — have stopped.  Like last year, Ecuador’s shrimp sales have been impacted by the Chinese crackdown on shrimp being imported to the Vietnamese port of Haiphong, in the north of the country close to the border with China, and then smuggled across the border.

 

Prices for headless shrimp, FOB Guayaquil have decreased about $0.10 a pound on average since a month ago, to $4.15 a pound for 26-30 count, $3.65 a pound for 31-35 count, $3.15 a pound for 36-40 count, $2.90 a pound for 41-50 count and $2.65 a pound for 51-60 count.  Last week was the first time in three years that 41-50 count shrimp prices fell below $3 a pound.

 

Source: Undercurrent News [eight free news reads every month].  Editor, Tom Seaman (undercurrent@undercurrentnews.com).  Ecuador Shrimp Prices Fall on Weak US, Chinese Demand.  Alicia Villegas (alicia.villegas@undercurrentnews.com) and Tom Seaman.  July 8, 2015.

 

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