New salmon price crash

The salmon price plummets – second week in a row.

“There is a hell of a lot of leftover fish on the way to the factories. It’s easier to buy than to sell, so to speak. It is not a problem to get fish,” says a buyer to SalmonBusiness. [factbox]

He sees several drivers behind the development.

“Several plants in Norway have closed down their processing, since the price was too high. In Europe, we are in a situation where the market is regaining power – they are waiting. But there are some factories that do not have the capacity they want, much due to the corona. And then there are more customers who take summer vacations and reduce their purchases in the heat wave.”

Beating
He sees farmgate prices of NOK 65-66 (EUR 6.4-6.5) for 3-4 kg, NOK 67 (EUR 6.6) for 4-5 kg ​​and NOK 69 (EUR 6.8)  for 5-6 kg. It is a heavy fall from last Friday’s levels above EUR 8/kg.

“2-4 have received the most beatings, but 4-5 are also reduced. It has been an insane fall. It has been heavy since Monday afternoon. Remember, it is not more than two weeks since 3-4 was at 90 kroner (EUR 8.9). And now it has been sold in Poland at 6.70 euros DDP (duty delivery paid).”

However, the fall in prices open opportunities for the fishmongers.

“You get the freezing market started, there are few contracts around, and now you can do something there. The underlying demand is unbelievably strong – when the price is right,” he says.

Spread
“68/69/71” (EUR 6.7/6.8/7.0), an exporter writes in an SMS about the price level for the most traded “industrial sizes” three to six kilos.

All sources SalmonBusiness has spoken to after lunch today confirm a steep price drop from the levels last Friday.

“Brutal. One has to adjust the course,” says a trader, who notes that there are wide spreads in the prices offered.

“Everyone is waiting and watching. It’s been bloody for two weeks. Europe is boiling over, and that comes into play.”

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