Currency-fueled price increase for salmon

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Macroeconomic news providing the strongest impetus in an otherwise lackluster market

“The currency just went through the roof,” the buyer at a large international processor told SalmonBusiness.

He was referring to the relationship between the two key currencies, the Norwegian krone and the euro. For now, 1 euro gets you 9.82 kroner, after stately Norwegian numbers crunchers, SSB, released fresh figures on value and price growth.

Weakened krone
The Norwegian core inflation rate sat at 1.1 percent, much lower than the forecasts of 1.5 percent, Norwegian E24 reported.

A weakened krone is contributing to higher salmon price in a lackluster market lacking other impetus. “It’s sure trending up, but the question is whether it’ll be as much out there as it is on the Norwegian side.”

Six different industry sources from across the value chain point to the following price intervals for salmon to be delivered next week:

  • 3 to 4 kg, EUR 4.9 to 5.1
  • 4 to 5 kg, EUR 5.2 to 5.5
  • 5 to 6 kg, EUR 5.4 to 5.6
  • 6-plus kg, EUR 5.6 to 5.9

This Friday, too, these players faced an anxious market.

Reductions
“It isn’t quite settled yet. Stable, maybe up a little. Some will reduce next week. We’re buying less,” the buyer at a salmon smoker said.

That view is supported by the country’s largest exporters. “Six-plus is difficult. China’s cutting steeply,” the buyer said.

Movement
“It’s flattened out somewhat. Many have sold fish now in the final week of low prices. Then there’s some who are trying to press prices up for next week. And the price will do that, but that’s not the basis for great things. You’ve got some movement in the currency,” an exporter commented.

“Now, I actually don’t have any fish to sell today,” the head of sales at a fish farmer said, adding, “But, I have talked to a few people, and the price level you’re indicating sounds okay. There’s an upswing especially on the 3-6 (kg size). I wish I had the type.”