December 1, 2017 / 1:27 PM / a year ago

Price of Norwegian farmed salmon seen rising to near NOK 50 next week

OSLO, Dec 1 (Reuters) - The price of Norway’s farmed salmon is expected to recover to a level near 50 Norwegian crowns per kilo next week for deliveries in Oslo, up from a about 45 crowns in the current week, industry sources told Reuters on Friday.

“We expect close to 50 crowns per kilo for deliveries in Oslo,” said an exporter who declined to be named.

Prices for the current week were initially expected to drop to a two-year low of 40-42 crowns per kilo, but in the end look set to come in at around 45-46 crowns as demand began to recover.

Final prices for the current week are settled on Tuesday next week at the Nasdaq Salmon bourse.

“When prices fell, demand rose, it wasn’t as bad as we thought,” the exporter said.

A salmon producer confirmed prices were rising, while adding that uncertainty prevailed over how strong the market was.

“Some offer salmon at 50 crowns or even higher but we are not there,” he said.

Prices were also affected by expectations of a seasonal upswing ahead of the Christmas season, which normally sees peak demand.

Salmon traded at around 80 crowns per kilo in early January at a time when supply constraints supported prices, but have since fallen as volumes grew.

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.

Average production costs for whole fish, including the cost of harvesting, rose by 13 percent to 34.29 crowns per kilo in 2016, according to data from the Norwegian Directorate of Fisheries.

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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