With almost 2 million pounds of live lobster a day coming ashore across the Canadian Maritime provinces, the processors, not the live trade, are “driving the bus” in determining what to pay for raw material (live lobster). The demand for CK & TCK is still robust, and inventories are low, but lobster tail inventories of 3-4 oz, 4-5 oz, and 5-6 oz are uncomfortably high, and demand for tails is soft.
The mathematics behind processing a lobster is that you get 2 lbs of lobster tails for every pound of CK, so you can see the dilemma the processors are facing. This summer, you will see a declining tail market while the CK market will hold firm in the near term.
Live prices this week on CQ are just over the $10 mark, bringing some semblance of “normalcy” back to the market. (Full Article)
Prices are subject to change.