Raw Material – This week
Raw materials Price is stable both, Hainan and Guangdong.
There is no possibility for prices continue to fall, since they are close to farming costs.
Raw Material – Next weeks
In the following months the raw materials price is expected to rise.
Due to uncertainty market, farmers don’t want to farm big size, so there is less big fillets supply;
that’s the reason why the small size percentage is more than before.
Raw materials supply is stable, but orders keep being short at the moment.
It seems in the second semester the supply will be short.
Finished product – Next weeks
In the following weeks there will be less supply for big sizes, due to farmers uncertainty,
they don’t want to farm long time.
Last weekend the G20 summit took place, and most people have been waiting to see what happens,
and if they reach an agreement. If this takes place, prices will return very quickly.
If they do not reach an agreement, the situation will gradually return by August,
as the stock of USA clients is decreasing and they will need to start placing orders.
Since USA clients start placing orders, prices will return immediately.
Moreover, USA seafood association is trying to negociate with White House to remove
Tilapia from the list of 25% tariff, the bigger supermarkets in USA are working on it.