Salmon price to fall back after two high flying weeks

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1027

Spot prices for next week will come down.

“There has been some extra [negative] pressure [today]. It is always so when the prices are flying high. At the same time, the farmers want have the same [prices] as last week, but they will not get that,” says an exporter to SalmonBusiness.

He outlines a price level of NOK 66-70 (EUR 6.6-7.0) for the most traded sizes. This means a decrease of about EUR 0.5 per kilo from the levels achieved last Friday.

“Even overseas markets are very challenging in terms of what they want to participate in [price-wise],” he says.

Facts

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

“It has come down a bit,” says another exporter. “We have bought, 300 tonnes for the time being, at the following prices:

  • 2-3 kilograms NOK 61 (€6.1)
  • 3-4 kilograms NOK 68 (€6.8)
  • 4-5 kilograms NOK 69-70 (€6.9-7.0)
  • 5-6 kilograms NOK 70-71 (€70-71)
  • 6+ kilograms NOK 72-73 (€7.2-7.3)

“Anything over it will not be considered anyway. We think it is too high. It comes down. It’s no surprise.”

Did it go too high too early?

“Yes, it did. It was not expected. There will be more fish to harvest this year compared to last year. There are not as many contracts as last year either. The industry halts completely. We do not have unlimited customers at these levels,” he points out.

Some purchasers are leaning back, waiting for prices to come down even further.

“The price must be NOK 66-67 (€6.6-6.7) at 3-4 [kilograms], NOK 68-69 (€6.8-6.9) at 4-5 and NOK 69-70 (€6.9-7.0) at 5-6. I haven’t bought anything yet, but the market is there,” says a trader.

“I heard 69, 70, 71 [NOK] earlier today,” comments another. “I haven’t been so active. I feel it is falling, and I’m waiting,” he adds.