Heavy harvesting volumes put pressure on next week’s salmon prices

News
780

Negative price pressure after upturn last week.

“It falls back. A krone or two,” said an exporter to SalmonBusiness. “The market is tough. But it is cold outside, so there may be less fish to sell going forward,” he said and pointed to reduced feeding as a result of extraordinarily cold seas.

Facts

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

“There has been pressure throughout the week. Lots of big fish, I hear,” said an importer. “I think most people are careful. But there is no doubt that there is quite a volume coming out.”

Break-even
After lunch on Friday most salmon is traded between EUR 4.3 and EUR 4.5 (FOB fish farmer), uncomfortably close to break-even for most of the farmers. Salmon over six kilos are slightly cheaper.

“There are high harvesting volumes and subdued demand. Especially now with Chinese New Year, the aviation market is sluggish,” said an exporter.

He has noticed heavy export volumes so far in 2021, and the coming week is no exception.

Combined
“There is a little difference between unsold this week and what you get for next week,” said a fish farmer, before he added: “44-46 kroner (EUR 4.3-4.5). But if you have tight cars with 3-5 kg ​​for next week, you can get 50 kroner (EUR 4.8). The big salmon is lower, 45-47 kroner (EUR 4.4-4.6), next week.

He added that intense harvesting activity combined with cold seas can tighten the supply of salmon on an annual basis.

“48 kroner (EUR 4.7) at 3-6 kg, 43-45 kroner (EUR 4.2-4.4) at 6+,” wrote a trader in a text message to SalmonBusiness.