Canners in the Philippines are reporting significantly higher raw material costs for skipjack. They are currently paying the fisherman $1150 per metric ton, and are now taking orders for May arrivals in the United States.

Skipjack raw material prices have also firmed steadily in Bangkok with levels now at U.S. $1100 to $1120 per M/T. This is an increase of over $250 per ton since mid November. However, in the Indian Ocean, fishing has switched from Yellowfin to Skipjack earlier than expected.

Fleets in the Indian Ocean have already lowered the purchasing price for the boats delivering directly to Seychelles. In contrast, the western Pacific (the world’s largest tuna fishing region) is reporting mixed results. The price for February has been fixed at $1100 per metric ton basis C&F Bangkok.

Prices for raw skipjack are also higher in the Eastern Tropical Pacific region. Fish traders in Vietnam are firm at $1150 per metric ton. The end result of these various scenarios is that the offers for finished canned product have reached levels of approximately $3.00 per case higher, on a landed cost basis, than deliveries which were made at the end of 2009.

McLane Global continues to strongly recommend that customers take advantage of the extremely attractive pricing which is still available from inventories now in the United States. It is a virtual certainty that the market will see strikingly higher prices for canned tuna as the year progresses into the second quarter of 2010. Again, it is an ideal time to purchase from existing stocks at prices which may be at the low point for the year.

Source: McLane Global Market Report