Increased supplies put pressure on salmon prices

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After a few high flying weeks, the salmon price falls back to the level where it has been traded most of the third quarter.

“There are some unsold fish sold these hours which put pressure on next week,” a fish buyer said to SalmonBusiness. “So I’m seeing a decline of four to five NOK. But it has not settled yet.”

“It is a correction, but we are uncertain about the continuation.” factbox]

Currency
“The Chinese currency has weakened against the dollar. It has an effect. It has not been a great market this week. And it will hardly be the next few weeks either. Pre-Christmas market has not started yet. The NOK has strengthened slightly against the euro, at 9.60 now, it makes up some kroner just there,” one exporter explained.

“When we pass 60 kroner it stops. There is nothing new there. 6.5 euros is a magic limit. It’s not possible for our customers to earn money on that in the market.”

“If we manage to stabilize it [the salmon price] at this level, we will be very happy. It is a strong seasonally price. September is the month with the lowest price,” he pointed out.

Average
SalmonBusiness’ market sources outline the following farmgate price level for salmon to be delivered to the market in the coming week.

  • €5.4-5.5 for 3-4 kilogram
  • €5.6-5.7 for 4-5 kilogram
  • €5.9-6.0 for 5-6 kilogram
  • €6.2-6.4 for 6+ kilogram

This means that the salmon spot price is back on average and where it has largely been traded in the third quarter.

“Farmers will keep the price up, but there is still a lot of unsold fish. Much large fish that indicates that there has been a good growth in the sea,” a trader poined out. “The premium of 5-6 [kilograms], but also 6-7, starts to fade away. I’m not worried that there will be low supplies going forward,” he added.