Supply surplus curbing prices

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Fish in storage dampening wholesale buyer eagerness

“It’s always this weekend (particular) when it drops. It happens like it was programmed (to happen),” an industry buyer told SalmonBusiness.

“This is my first purchase this year. I’m taking some transports. There’s some fish available,” he said, adding, “The big problem now is that there’s so much in the freezers. Much of what was supposed to be produced now is already produced, so the demand is pretty sluggish. It would be exciting to know how much fish is in storage.”

Product status
“Salmon is about to lose its position as a prized product in supermarkets. We’ve seen it in Russia,” the buyer said, adding that he and many other processors are enjoying the fruits of good availability and roomy margins.

“It’s too good to be true.”

So, today’s market picture is unambiguously one of falling prices.

“It’s truly a day of little fish sold that’s applying a bit of pressure. It’s been traded at somewhat lower levels that earlier this week, by one or two kroner (EUR 0.1 or 0.2),” one source said.

“I’m seeing a drop of three kroner, but little has sunken in. There’s still a lot of fish in play from this week at reasonably sharp prices,” another said.

Inflated
Seven, industry sources independently referred to the following spot prices (for growers) for next week:

2 to 3 kilo, EUR 4.3 to 4.4
2 to 4 kilo, EUR 4.8 to 5.1
4 to 5 kilo, EUR 4.9 to 5.2
5 to 6 kilo, EUR 5.0 to 5.2
6-plus kilo, EUR 5.2 to 5.4

“Big fish are a dark horse. The amount has been inflated enough that prices have been pushed down pretty hard. When the fly-out market is full, we suddenly left with another market,” a fish trader said.

Downturn
“We’ve had bids at those levels, but it isn’t over yet. I don’t know for sure anymore that it’s going down,” another trader said.

“We’re talking about a downturn of between three or four kroner (EUR 0.3 or 4). There are still fish around today. Trading hasn’t exactly made us busy today.

“It’s taking longer and longer before prices on Fridays are set. It has something to do with the turbulence in the market,” an exporter said.