Slow European summer demand gives lower salmon prices

Price drop for the second week in a row.

June is ending with weakening in farmgate salmon prices. That is the conclusion after SalmonBusiness’ weekly call after lunch on Friday.[factbox]

“3-4 (kg) from 93-95 kroner (EUR 8.9-9.1), 4-5 from 95-97 kroner (EUR 9.1-9.3), 99-100 kroner (EUR 9.5-9.6) on 5-6 – as it looks now. It’s a bit down,” says a buyer.

“But I fear that it will continue down next week. For us, it is “play it safe”. What we buy we sell.”

“People know that the volume is coming. And in addition, it is quite dead out in Europe on the demand side. It is not the case that we are being called up by lots of customers at the moment. It is outreach sales,” he explains.

Falling spot prices are confirmed from several other industry sources.

“About four kroner down. 3-6 kg: 95, 97, 100 kroner (EUR 9.1, 9.3, 9.6),” says an exporter.

“A bit down. Is under (NOK) 100 now,” writes another exporter in a text message.

Although prices are declining, it is no big surprise. Just normal seasonal fluctuations.

“A picture is beginning to emerge, and the last week of June has much higher prices than I thought a few weeks ago,” says a seller in a fish farming company.

“99, 103 and 105 kroner (EUR 9.5, 9.9, 10.1) for 3-6 (kg). 5-6 (kg) is 3-4 kroner down, a couple of kroner down for 4-5 and 3-4 is down 3-4 kroner compared to what I remember it was last Friday.”

“There has been a low supply in recent weeks. There has been talk of an increase in harvesting volumes, but cold temperatures have caused delays.”

He is not very worried about the coming months.

“One can secure the rest of the year at 80 kroner (EUR 7.7) at Fish Pool,” he points out, and confirms that it corresponds to the price level of fixed contracts: “Yes, that is where it is.”


Related Articles