High contract prices demonstrate faith in 2019’s salmon market

“The contract prices saw a little jump around 14 days ago”, Svein Helge Bruheim of Bravo Seafood told SalmonBusiness.

His company sold 80 per cent on the spot marked, 10 per cent through Fish Pool and 10 per cent on contracts.

Fish Pool
A second exporter, who wanted to remain anonymous, told SalmonBusiness that there is huge faith in high prices next year.

“The contract prices, to farmers, is around 6,2-6,3 EUR/kg for the next 16 months”, he told SalmonBusiness.

“That is based on the Fish Pool prices. We’ve been selling on these contracts the past few weeks. That is fantastic. The contract prices have never been this high”, he continued.

Bright future
However, Some buyers are not willing to buy at the current price level.

“Customers think it’s expensive. Some of them talk about 5,9-6 EUR/kg. They want it to be at that level, but there is a mismatch between how much the customer wants to pay and how much the farmers want”, he said.

Bruheim of Bravo Seafood confirmed the high price level. Fish Pool’s forward prices shows 6,98 EUR/kg in December this year, and 6,51 EUR/kg at the end of 2019.

“At the moment, the prospects are good for the producers”, said Bruheim.

Higher spot prices
Last week, SalmonBusiness reported a small price jump on the spot prices. Salmon to be delivered this week was sold for 5,8-6,1 EUR/kg (4-5 kilos).

“Buyers imagined low prices in September and October, but now somebody believes that the price rise is already coming.”