Lobster Prices Stop Falling and Start to Rise as Canadian Production Declines

After in-depth analysis and evaluation, lobster prices from the Canadian docks to the US market, and further expanding to the international wholesale market, have reached historical lows and are expected to rise in the near future. The two major production regions in Canada completed their fishing seasons at the end of May, accounting for a quarter of Canada's total production and about 15% of global production. Previously, with the commencement of fishing activities in some new production regions, production has increased significantly, driving prices to plummet from CAD 20 per pound to CAD 8 per pound. However, the catch volume in many production regions in Canada is now gradually decreasing, and it is expected that prices will rebound noticeably within the next one to two weeks.

Furthermore, lobster prices in the US wholesale market have also remained at relatively low levels. The gradual recovery of the economic situation is another important factor driving the price increase. Canadian exporters generally state that, given the reduction in production and the gradual improvement in market demand, lobster prices will see an upward trend.

Specifically, Canada's two largest production regions (Areas 33 and 34) completed their fishing activities on May 31st, and the production from these two regions has a significant contribution to Canada's and the global total production. Meanwhile, the production growth momentum in some other production regions in Canada has gradually slowed down since April, and the industry generally believes that the peak production period for this year has passed, and the market is about to see positive changes.

Prior to this, the commencement of fishing activities in many new production regions in Canada led to a significant increase in production, causing the lobster prices at the docks in Nova Scotia and the St. Lawrence Bay to plummet from a peak of CAD 20 per pound to CAD 8 per pound. However, Canadian exporters pointed out that the closure of the two main production regions in Nova Scotia has had a significant impact on the market, and under normal circumstances, the market price will rebound within 7 to 14 days.

Furthermore, the catch volumes in other regions of Canada are also decreasing, and the current climatic conditions are not suitable for offshore fishing. The confidence of exporters and buyers has improved significantly compared to ten days ago. Currently, the offering prices from Canadian exporters are extremely low, almost unable to achieve profitability. With the significant reduction in catch volumes, the market will enter a stage of price increase.

Meanwhile, lobster prices in the US wholesale market have also remained at relatively low levels. According to the latest data released by Urner Barry, the price of 1.25-pound live shrimp is USD 5.85 to 6.35 per pound, down 4 to 5% from May 28th, and even less than half of the price on April 4th. The gradual recovery of the economic situation is expected to further drive the price increase.

In summary, from the Canadian docks to the international market, lobster prices have reached the bottom and are about to rebound. The decline in production in Canada's main production regions and the improvement in market demand are the main driving forces for the price increase. It is expected that lobster prices will continue to rise in the next one to two weeks.