September 7, 2018 / 12:48 PM / 2 months ago

UPDATE 1-Norwegian salmon price seen falling 2-3 crowns per kilo next week

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OSLO, Sept 7 (Reuters) - The price of Norwegian farmed salmon is expected to fall by 2-3 crowns to about 57-58 Norwegian crowns per kilo next week for delivery in Oslo after two weeks of a sharp increases, two industry sources told Reuters on Friday.

“We expect prices to drop 3 crowns to about 57 crowns per kilo on average next week,” said an exporter who declined to be named.

“When prices rise to 60 crowns then our customers stop buying salmon for storage and prices drop back. We expect prices to remain under pressure the next weeks before a recovery in mid-October.

A salmon producer also said prices were set to fall, although market players maintained a wait-and-see approach.

“We have not done any trades yet but as it seems now prices are down 2-3 crowns to just under 60 crowns for next week,” the producer said.

“The main sizes 3-4 and 4-5 kilos salmon are in the range 56-58 crowns per kilo. We still have salmon from this week to sell which creates some uncertainty and the harvested volumes are still good,” he said.

Salmon prices have been extremely volatile in 2018 and peaked at about 80 crowns in the second quarter before dropping below 50 crowns two weeks ago.

Average production costs for whole fish, including the cost of harvesting, stood at 34.36 crowns per kilo in 2017, or 0.12 crowns lower than in 2016, according to data from the Norwegian Directorate of Fisheries.

Norway is the world’s top salmon producer, with fish farming the country’s second-largest export industry after oil and gas. The share price of listed farming companies depends heavily on changes in the price of fish.

Leading Norwegian producers include Marine Harvest, Salmar, Leroy Seafood, Grieg Seafood and Norway Royal Salmon. (Reporting by Ole Petter Skonnord, editing by Terje Solsvik)

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