Heavy harvesting volumes as salmon spot price falls closer to €5/kg

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Sinking prices after two months of stability. 

“We have not traded anything, just received indications. But it will go down,” says a buyer to SalmonBusiness.

He’s refering to next week’s salmon spot price.

“I’ve heard plus/minus NOK 50 (€52) for 3-6 [kilos]. Maybe under NOK 50 too. There is some fish left unsold today, which puts pressure on the market.”

Facts

SalmonBusiness collects spot prices for salmon every Friday after lunch. These are fish to be delivered the following week. Here we contact several members of the value chain, including farmers, exporters and importers. We always have at least five independent sources, although not all sources are necessarily displayed on print. We vary which sources we use, and do not use the same sources each time.

Waiting
SalmonBusiness has talked to six independent industry sources after lunch on Friday, and they refer to the following farm gate price level for next week:

* NOK 46-48 (€4.8-5.0) for 3-4 kilograms

* NOK 48-50 (€5.0-5.2) for 4-5 kilos

* NOK 50-52 (€5.2-5.4) for 5-6 kilograms

“There is a lot of fish going out. There is no need to stress, just keep calm and wait,” says an exporter, adding: “Small fish is very difficult.”

Seasonal pattern
“We’ll have a few weeks with a fall now. It is unavoidable with summer vacation in Europe”, says a buyer and refers to the usual seasonal pattern with falling spot prices in late summer and early autumn.

“But some fish have been taken out [during the summer]. It [the salmon price] can quickly get stronger than we think during the fall,” he notes.

All sources comment on the significant supply of fish to be placed in the market next week.

Not over
“That’s a big fall. There are some unsold fish. The market is hesitant. It’s quite difficult,” says a trader.

“I think it goes on further down,” says another.

“The majors are going to slaughter all weekend. It is announced huge slaughter volumes next week. We are talking about a price drop of NOK 6-7. But the fall is far from over.”