U.S. buyers of Asian-raised Pacific white shrimp are adjusting to a new reality — a summer without a significant drop in prices.
But a combination of market influences — from bad weather in Southeast Asia to a soft U.S. dollar — are preventing prices from falling at a time of year when product is making its way to U.S. shores at a considerable rate.
“The major production of shrimp comes off in June, July and August. Through the summer months, you would see prices drop as a result,” said one U.S. seafood executive based in the Northeast. “But because of a combination of droughts, disease, increased consumption and a weak U.S. dollar, we have not seen that traditional drop in pricing that we would expect during the summer months.”
And news in early August of Thailand — by far the United States’ No. 1 shrimp supplier — revising its 2011 shrimp-export forecast isn’t helping, either. Thailand’s 2011 shrimp exports will likely decline by 7 percent to 379,400 metric tons this year due to a production shortfall stemming from flooding in the southern part of the country and hotter-than-usual weather, according to Panisuan Jamnarnwej, president of the Thai Frozen Foods Association.
In the first half of 2011, Thailand’s shrimp exports totaled 164,984 metric tons, a 12 percent drop from last year. Meanwhile, according to NOAA Fisheries, U.S. shrimp imports from Thailand were down 4.4 percent through June, to just under 169 million pounds.
Also, a strong Thai baht against a weak U.S. dollar has forced Thai shrimp exporters to avoid booking orders too far in advance to mitigate the risks of the gap between the two currencies widening even further.
In early August, shell-on, head-off raw Asian-raised vannamei were quoted at around USD 5 for 21-25s, in the mid-USD 4 range for 26-30s, at around USD 4 for 31-35s, in the high-USD 3 range for 36-40s and in the mid- to high-USD 3 range for 41-50s.
