OSLO, Sept 1 (Reuters) - The price of Norwegian farmed salmon is expected to rise by around 1 crown for deliveries next week to 49-51 crowns per kilo after hitting the year’s lowest level in the current week, industry sources told Reuters on Friday.
“Prices are slightly up, we expect 49-50 crowns from 48-49 in the current week,” said one producer who declined to be named.
“There’s good supply and the market says ‘no’ to (even)higher prices,” he added.
An exporter of salmon confirmed a small price increase was likely.
“Prices are quite stable, up 1 crown for next week and on average we expect 50-51,” the exporter said.
“We expect at least 10 percent more supply for the rest of the year compared to last year and we don’t expect to see a repeat of the peaks we’ve seen earlier,” he added.
Salmon prices peaked at around 80 crowns per kilo in early January and have since remained volatile.
Norway is the world’s top salmon exporter, and the share price of listed farming companies depends heavily on changes in the price of fish.
Production costs are at around 32-33 crowns per kilo.
Supply constraints supported prices in the first half of 2017, ahead of an expected increase in volumes later in the year.
Leading Norwegian producers include Marine Harvest, Salmar, Leroy Seafood, Grieg Seafood and Norway Royal Salmon. (Reporting by Ole Petter Skonnord, editing by Terje Solsvik)