Oversupply of large fish putting downward pressure on salmon prices
Expect another drop in prices next week.
“It looks like another decline. We might end up in the low NOK 70s (€5.88),” an exporter tells SalmonBusiness at lunchtime on Friday.
He is clear about the reasons for the decline in prices for the spot market.
“We have a surplus of fish, and the market on the buyer’s side, especially in Europe, has been slow.”
“Our currency is making euro prices quite attractive. So, there might be more activity,” he adds hopefully.
“The 6kg+ category has seen a significant drop. It has been hit the hardest. The 3-4kg category is hovering around NOK 71 (€5.96), the 4-6kg category is up by a krone, and the 6kg+ category has dropped to the 3-4kg level (€5.88),” he said.
“I believe the 6kg+ category could end up below the 3-4kg category next week. Some of the major players have a large supply of big fish.”
Others, both producers and exporters, anticipate a similar price range, potentially reaching up to NOK 73 (€6.12) for farmers in Northern Norway.
“I’ve seen prices of NOK 70 (€5.88) for 3-4kg and NOK 71 (€5.96) for 4kg+, but I haven’t made any purchases yet. I could probably buy at NOK 71-72 (€5.96-€6.08),” says one trader.
Others are hoping for higher prices.
“We’ve set prices at NOK 74 (€6.24), 76 (€6.36), and 78 (€6.48) for 3-6 kg, but we haven’t made any sales at those levels,” says a one farmer. “Some of the larger players claim they can get fish at NOK 71-72 (€5.96-€6.08). My guess is that we’ll end up in the range of NOK 73-76 (€6.12-€6.34) for 3-6 kg, but it’s a bit early to say,” he adds.
“It’s been a decline across all size categories. It’s been like this the entire week. The challenge is that the market is extremely tight, making it incredibly difficult to find buyers. We have good quality fish that are feeding well,” another exporter told SalmonBusiness.