September 15, 2017 / 12:25 PM / a year ago

Norway salmon price seen stable around 49-50 crowns next week -sources

OSLO, Sept 15 (Reuters) - The price of Norwegian farmed salmon is expected to remain stable at a 20-month-low of around 49-50 crowns per kilo next week for deliveries in Oslo, industry sources told Reuters on Friday.

“A lot of buyers bid for lower prices but it seems the price is stabilising around 49 crowns per kilo in Oslo,” one producer, who declined to be named, told Reuters.

He said several of the buyers were likely building reserves due to more supply available and cheaper prices.

“The temperature in the sea is good for feeding and growing salmon, while it is bad for sea lice. Some producers seem to be harvesting fish now (due to sea lice) instead of October,” the producer said.

One exporter, also unnamed, also expected prices next week to stay stable at around 50 crowns per kilo. Final prices for this week will be settled Tuesday next week on the salmon exchange Nasdaq Salmon.

“Volumes aer high, so prices most probably should drop going forward. As we see, it is not higher consumption that is taking the supply, but a move to build reserves,” the exporter said.

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 Gwladys Fouche)

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