The agribusiness knowledge provider
Log In

April 13, 2012

Thai Shrimp Weekly:  Thai New Year holidays fail to lift weak shrimp prices (week ended Apr 12, 2012)

An eFeedLink Exclusive        
 
 
Price summary
 
Domestic shrimp prices remain flat, dashing farmers' hopes that the five-day Thai New Year (Songkran) holidays that started on April 12 would drive consumption up and lift prices spooked by oversupply and weak export demand.
 
As expected, there has almost been no movement in the buying rates of Thailand's shrimp processors and exporters on minimal trading, given this week's operations was cut from six to three days to allow workers to celebrate Songkran.
 
A week before Songkran, the benchmark prices of exporters slid by as much as THB8/kg (US$0.26/kg) on excess supply. The last decline was on top of the fall of THB13/kg (US$0.42/kg) two weeks ago.
 
 
Market analysis
 
After weeks of slow decline during the last two months, prices in the shrimp-trading capital of Mahachai crashed three weeks ago. This came after seafood processors, unable to compete with cheaper exports from India and Indonesia, started cutting down production. The drop appeared to have bottomed out last week.
 
At wet markets across the capital, shrimp were being sold at a bargain on the eve of the Songkran holidays, with smaller sizes selling at THB100-110 (US$3.25 - 3.57) a kilogramme, down by THB20-30/kg (US$0.65 - US$0.98) from a week ago.
 
While most are blaming cheaper exports from Indonesia and India for Thailand's current price woes, Thai Union Frozen Products (TUF), the country's leading seafood exporter, attributes the current price slump to rising local production.
 
After Thailand's severe flooding in October and November in 2011, shrimp farmers had restocked their ponds. The first wave of harvests came during the last two weeks, leaving the country flooded with supply.
 
During the last few weeks, according to the TUF, domestic shrimp prices have plummeted by no less than 14%, a welcomed development as far as exporters are concerned.
 
Before the current price slump, Thai shrimp exporters were complaining that Thailand's raw material prices were too high that they were losing out to exporters from other countries where prices were comparatively lower.
 

White shrimp prices (in Thai baht) at Thailand's main markets

Unit of Measure: Thai Bhat

Shrimp size

Mahachai seafood market

Thai frozen foods association
benchmark price

Bangkok markets

Apr 5

Apr 12

Apr 5

Apr 12

Apr 5

Apr 12

40 pcs/kg

--

--

153.80

152.40

210-220

210-220

50 pcs/kg

135

135

133.80

132.40

160-170

160-170

60 pcs/kg

125

124

125.20

125.00

150-160

150-160

70 pcs/kg

120

120

118.40

119.70

140-150

140-150

80 pcs/kg

108

112

110.20

110.80

130-140

130-140

90 pcs/kg

98

99

110.20

100.20

120-130

120-130

100 pcs/kg

90

92

--

--

110-120

110-120

Note: Farm-gate prices are THB10-15 lower than those at Mahachai market.
US$1=THB 30.77 (Apr 13, 2012)

 

 

All rights reserved. No part of the report may be reproduced without permission from eFeedLink.
Share this article on FacebookShare this article on TwitterPrint this articleForward this article
Previous
Subscribe To eFeedLink 
Copyright ©2014 eFeedLink. All rights reserved.
Find us on FacebookFind us on Twitter