Peru's fishmeal prices have stabilized at levels seen back in January , while producers await for the first 2016 anchovy quota, expected to be known by May.

Fishmeal prices are now at the range of $1,720-1,770 per metric to,n FOB Peru, for super prime, similar to the price seen in January, which was followed by a price drop of up to $1,600/t in February.

Prices have recovered to January levels on the back of expected higher Chinese demand from June -- when shrimp production resumes in the Asian country.

Meanwhile, Peru's fishmeal stocks are "very scarce" and running out, with current inventories ranging from 15,000t to 30,000t, major producers told Undercurrent News.


Despite having low fishmeal stock, China is still buying hand-to-mouth , producers said.

There's not much activity, but there's not much to sell, either, and the future is very uncertain," a source with a major fishmeal producer told Undercurrent.We don't think prices will continue growing, as they have not reached the levels of the beginning of the second fishing season in 2015 [which were at about $1,900/t ]," he said.

The El Nino weather phenomenon is still present in Peru, but it has started its declining phase . However, it is difficult to foresee fishing conditions at the start of the year's first catching season, the fishmeal producer said.

So far, the first anchovy fishing season for the north-center area is expected to take place from May to July, when it usually runs. Last year, however, the first season was brought forward at the risk of lower catches linked to the presence of a strong El Nino and the arrival of warm Kelvin waves, which forces anchovy to migrate to cooler, deeper waters.

Peru's marine institute Imarpe initiated its research cruise last week and the anchovy biomass assessment, which will be used to set the fishing quota, is expected to be released by the end of April.

"The quota could be announced by the first week of May, and the fishing season could start in mid-May," said a well-placed fishmeal source.

"Only bad news after the cruise or any unexpected demand could cause the price to rise but for the small stock already produced," said another fishmeal producer.

But, the current fishmeal stock could run out quickly, considering China's increased need for fishmeal.

"[Chinese fishmeal] demand for June-July will not be [immediately] covered if the next fishing season starts in May. It takes about 20 days to make fishmeal and about 25/40 days [for it] to reach its destination to Asia," the producer said.