Post by Deleted on Oct 25, 2018 10:06:24 GMT -5
ANALYSIS: Imports from Russia Down 32.1% on King Crab; Pricing at all Time Highs
SEAFOODNEWS.COM by Janice Schreiber - October 24, 2018
Supplies in the red king crab market remain extremely thin. King crab has always been a high valued and priced item but record low imports from Russia are now coupled with all-time highs. Year-to-date, Russian king crab imports continue into August much lower than last year; down 32.1 percent. That’s a difference of 6.3 million pounds less in the system from last year.
In a similar fashion, August Russian king crab figures are down significantly on a month-to-month basis; 50.9 percent lower when compared to July 2018. When looking at the cyclical behavior of imports, this August was outside of the norm. The past two years, along with the three-year, typically see an increase in imports during August. However, 2018 saw the opposite happen. Imports were at the lowest level the U.S. market has seen all year – under 1 million pounds, 723,161 pounds total with only 551,752 pounds from Russia.
Pricing, as mentioned previously, is at record high for almost all sizes of both red and golden king crab. If we look specifically to 16-20s, for example, both red and golden king crab have been adjusting higher since about the beginning of April this year. 16-20 Russian red king crab was trading at $14.00 the week of April 2nd and the market is now trading at $18.00, a $4.00 or 28.5 percent increase.
Buyers will not see reprieve from Alaska when it comes to red king crab. Domestic landings are anticipated to start to trickle in during the beginning to mid-November time frame. However, as previously reported, the quota has dropped again this year, marking the second straight year of a quota reduction for red king crab out of Alaska. The quota is down 35 percent to 4.3 million pounds. As of this writing, 21 percent of the quota has been caught. For golden king crab out of Alaska, the golden king crab fishery has an increased quota this year of 6.3 million pounds, up around 1 million pounds from last year. The West Aleutian Islands golden king crab fishery is about 45 percent caught as of this writing.
If we look at retail features of king crab, we’ll see a similar trend. Most areas are seeing an uptick in pricing versus 2017. Overall, if we look at the total last year versus this year from August 1st until the present, we see the average for both clusters and legs has increased about $2.00 from 2017 to 2018.
As buyers look for replacement product, it will be tough to come by. Demand overseas for live crab in the Asian markets continues in a seemingly endless appetite. Many market participants report they are being out bid for Russia product whether it be red or golden king crab. All posted quotations are full steady to firm currently in the Russian red and golden crab index with higher offers noted.
With the market continuing to see upward pricing pressures, if you can land it, king crab looks to be a high ticket item this holiday season.
www.seafoodnews.com/Story/1120930/ANALYSIS-Imports-from-Russia-Down-32-point-1-percent-on-King-Crab-Pricing-at-all-Time-Highs
SEAFOODNEWS.COM by Janice Schreiber - October 24, 2018
Supplies in the red king crab market remain extremely thin. King crab has always been a high valued and priced item but record low imports from Russia are now coupled with all-time highs. Year-to-date, Russian king crab imports continue into August much lower than last year; down 32.1 percent. That’s a difference of 6.3 million pounds less in the system from last year.
In a similar fashion, August Russian king crab figures are down significantly on a month-to-month basis; 50.9 percent lower when compared to July 2018. When looking at the cyclical behavior of imports, this August was outside of the norm. The past two years, along with the three-year, typically see an increase in imports during August. However, 2018 saw the opposite happen. Imports were at the lowest level the U.S. market has seen all year – under 1 million pounds, 723,161 pounds total with only 551,752 pounds from Russia.
Pricing, as mentioned previously, is at record high for almost all sizes of both red and golden king crab. If we look specifically to 16-20s, for example, both red and golden king crab have been adjusting higher since about the beginning of April this year. 16-20 Russian red king crab was trading at $14.00 the week of April 2nd and the market is now trading at $18.00, a $4.00 or 28.5 percent increase.
Buyers will not see reprieve from Alaska when it comes to red king crab. Domestic landings are anticipated to start to trickle in during the beginning to mid-November time frame. However, as previously reported, the quota has dropped again this year, marking the second straight year of a quota reduction for red king crab out of Alaska. The quota is down 35 percent to 4.3 million pounds. As of this writing, 21 percent of the quota has been caught. For golden king crab out of Alaska, the golden king crab fishery has an increased quota this year of 6.3 million pounds, up around 1 million pounds from last year. The West Aleutian Islands golden king crab fishery is about 45 percent caught as of this writing.
If we look at retail features of king crab, we’ll see a similar trend. Most areas are seeing an uptick in pricing versus 2017. Overall, if we look at the total last year versus this year from August 1st until the present, we see the average for both clusters and legs has increased about $2.00 from 2017 to 2018.
As buyers look for replacement product, it will be tough to come by. Demand overseas for live crab in the Asian markets continues in a seemingly endless appetite. Many market participants report they are being out bid for Russia product whether it be red or golden king crab. All posted quotations are full steady to firm currently in the Russian red and golden crab index with higher offers noted.
With the market continuing to see upward pricing pressures, if you can land it, king crab looks to be a high ticket item this holiday season.
www.seafoodnews.com/Story/1120930/ANALYSIS-Imports-from-Russia-Down-32-point-1-percent-on-King-Crab-Pricing-at-all-Time-Highs