Buyers abandon hope of stability as market’s wild ride continues

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The salmon spot price continued its wild ride Friday, moving out of last week’s trough that saw a 30 percent drop to rise  – and peak at over one euro per kilo.

But with the recovery looking likely to continue many buyers are holding back.

“Because of the recovery, we will not buy anything today,” a buyer for a leading European processing company SalmonBusiness.com.

He said given the current NOK 63-65 (EUR 6.4-6.6) for 3-6 kilos was” too much” given the abundant harvest.

But another trader said: “I’ve also heard about higher prices. But we’re not done yet. I fear it will go even higher. And if so, then it’s full speed back down again. The current market cycle is hopeless, totally hopeless.”

“Farmers have adjusted their prices but I do not think their harvests are selling so well. We getting offered prices of NOK 64-67 (EUR 6.5-6.8),” said another exporter.

He added: “It creates uncertainty when it’s this way – and I do not believe that there will be less fish.”

Another salmon farmer referred to specific prices that he has managed to sell at for delivery next week.

“I have a 6-8 [kilo] prices at NOK 68.50, at 5-6 [kilo] at NOK 66.50 and 4-5 [kilo], and  at NOK 65. And it’s 3-4 [kilo] is NOK 63-64.

He said the bounce back from last week’s 30 percent low was to be expected but the unpredictability was causing confusion and hesitation among buyers  – and ultimately harming producers.

“We will only hope price stabilty will return in the not so distant future,” he added, echoing the sentiment of many.