The market for frozen North American lobsters (Homarus americanus) is heating up, with customers scrambling to buy both the tail and the meat before prices rise further.

Canada’s spring season ends in late July, ending the supply of large hard-shell lobsters for about 2.5 months, mostly sold live, and shifting more focus to the U.S. state of Maine.

Canada has more than 7,300 licensed lobster boats on the water, catching about two-thirds of the roughly 100,000 tonnes of lobster each year during the spring. LFA 25 runs from August 9 to October 10. About 700 licensed fishermen have consistently caught between 8,000 and 11,000 tonnes of lobster each year over the past few years, mostly new shells, as in Maine. A whopping 34,043 metric tons (80%) of the 42,517 metric tons of lobster caught in Maine last year were caught between July and November.

This is the time of year when processors are typically busy turning new shells into tails and meat. But buyers are now realizing that -- as happened last year -- Canadian plants may not be coming in late in the winter because of high raw material prices. Another factor pushing up prices is that Maine's harvest is down about 25% from last year.

Urner Barry has been posting steady price declines for live hardshell lobsters since early April, when the average price for a 1.25-pound lobster was $17.00-$17.30 per pound. By June 1, the average had dropped to a low of $5.95-$6.50/lb. However, as of August 29, the average price had rebounded to $10.05-$10.35/lb, up 59-69% from nearly three months earlier. Other sizes of hardshell lobsters have also increased.

Live new-shell lobsters from New England, listed on the UB price board on August 1, have maintained their average price since then. On August 29, prices were $7.75-$8.25/lb, the same as four weeks earlier.

UB North American frozen tail and meat prices also increased, but not significantly. The average price for 4-5 ounce tails on August 29 was $22.25-22.75/lb, up 5% from the average price of $21.25-21.75/lb in early June. Similarly, frozen tail, claw and finger meat prices were $33.75-34.75/lb on August 29, up 5% from nearly three months earlier, when prices were $32.00-33.00/lb.

Limited supplies, higher costs, and continued strong demand for lobster products, especially meat, are also on the rise.

Shell shrimp are priced at $5.00-$5.50/lb at the dock.

Meanwhile, harvesters are asking $5.50/lb at docks on Maine’s southern coast, up $0.50/lb from mid-July prices.

In Stonington, Maine, the state’s largest landing port, harvesters are getting lower prices of $5.00/lb for new-shell shrimp and $5.95/lb for hard-shell, up from $4.15/lb and $4.90/lb in early July.

Live lobster export prices also increased.

One important event that could impact the market is China's Mid-Autumn Festival, which is scheduled to begin on September 17.

The company is asking $11.76/lb for 1.25-pound shrimp delivered to Shanghai, China, in week 36/2024 (Aug. 31-Sept. 6), a 41% premium over the $8.34/lb delivered to Shanghai in week 24 (June 10-16). This comes after a 56% drop from the $18.88/lb in week 13 (March 25-31).

Similarly, the company charged $11.83/lb to Paris, France in week 36, a 44% premium over the $8.23/lb to Paris in week 24. This was a sharp 56% drop from the $18.57/lb charged in week 14 (April 1-7).

However, in Rungis, Canadian live lobster prices have not changed much since hitting a six-year low in week 24. A 400-600 gram lobster averaged $13.61/lb in weeks 34 and 35.

Source: VASEP