Reports continue that Japanese contracts for Canadian crab are about to be signed -- that parties are very close, and there are some indications that the Japanese may end up paying more for crab than they initially projected.
If so, the reason is likely to be capelin. Fish markets move in mysterious ways, and this year the Icelandic capelin fishery was poor, resulting in a shortage of capelin roe in Japan. The same trading houses that are short capelin roe are also negotiating with Newfoundland packers over crab --- these same packers who will have capelin shortly. Any linkage between the two will be to the advantage of the Newfoundland packers.
Projections are for strong and robust capelin prices this year, based on the supply situation. This could be a factor keeping the crab prices high as well. Of course- other factors include the strong sales of crab in Japane last year, and the fact that Chinese plants need inventory.
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