Peruvian authorities implemented a small-scale fishing ban from June 5-10 in the main production areas, restricting vessel activity to 5-10 miles offshore in the central-northern region, causing prices to generally rise.
MSICeres Trading Company General Manager James Frank noted in a market report: "Buyers only took a week to start raising offers, hoping to close some deals. Producers are more focused on completing existing contracts and are not in a hurry to sell additional futures."
Currently, Peru's remaining quota is approximately 960,000 tons, and the industry is closely monitoring whether the total 3-million-ton quota can be successfully completed.
"So, how many quotas can actually be landed? We're back to the question raised at the beginning of the production season, and the game begins!" Frank said.
A recent IFFO report indicates that amid uncertainties in Peruvian production, global supply trends are supporting current price levels. As of April this year, global fishmeal production increased by 3% year-on-year, while fish oil production grew by 14%. Domestic fishmeal production in China has declined, but China's aquaculture production, aquafeed demand, and marine raw material usage are expected to continue growing through 2025. Global fishmeal consumption is projected to reach 5.6 million tons, and fish oil 1.2-1.3 million tons by 2025.