China
Market update: Fishmeal prices fall as season end nears
According to Mintec, the commodities researcher, demand for fishmeal is the strongest at the start of the season, but fades gradually towards the end as buyers have already made their purchases.
Buyers have also been holding off purchasing large volumes of imported fish meal, mainly from Peru, at Chinese ports, causing a build-up of stocks at port and weakening prices.
Peru is the world’s largest fish meal producer and exporter. Production in Peru has risen, due to an increase in fish stocks following the end of El Niño in May this year.
As a result, Peruvian fish meal production for 2016 is forecast up 7% year on year at 900,000 tonnes. The increase in supplies has added downward pressure to global prices. Furthermore, Peruvian fish meal exporters have also cut export prices in a bid to stimulate demand.
