Anchovy stocks have dropped significantly as a result of anomalous environmental conditions, the Instituto del Mar del Peru (IMARPE) said in its October 2014 report.

IMARPE reported frequent and repeated presence of large masses of warm water (Kelvin waves) and warming ocean water, both highly unfavorable for anchovy, whose habitat is cold water. A notable decrease in marine productivity was also observed. 

According to the report, these climatic and environmental factors have a direct impact on the distribution of oxygen and nutrients in the sea and in the depth of the thermocline. \"The high frequency of the Kelvin waves have caused a cumulative effect on the oceanographic properties of the Peruvian sea, reducing the extent of coastal habitat, fertility and significantly affecting phytoplankton biomass,\" the report stated. 

This scenario has led to a significant decline in anchovy biomass, lower than seen in recent years. 

IMARPE said it will intensify monitoring of these environmental conditions.

The news has caused fishmeal prices to fluctuate widely. \"I think that we all should be expecting higher prices until the situation becomes clearer. At least one expert in Peru is saying that prices look to go about US$ 200 m/t higher, Hammersmith Marketing commented.