September 14, 2018 / 1:18 PM / 2 months ago

UPDATE 1-Norwegian salmon price seen falling 3-5 crowns per kilo next week

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OSLO, Sept 14 (Reuters) - The price of Norwegian farmed salmon is expected to fall by 3-5 Norwegian crowns ($0.4-0.6) to a range of 53 to 55 crowns per kilo next week for delivery in Oslo, two industry sources told Reuters on Friday.

“We expect a price drop of 3-5 crowns next week from 57-58 crown this week, and we will end somewhat below 55 crowns,” said a salmon producer who declined to be named.

“It is expected that prices will be lower in September due to seasonal swings,” the producer said.

One exporter also predicted a drop in prices.

“Prices are down 3 crowns on average to about 55 crowns per kilo,” the exporter said.

“This is classic development for September. We expect 50-55 crowns the next 3-4 weeks before a recovery from mid-October,” the exporter said.

He added that a strengthening of the Norwegian crown currency added to the pressure on prices.

Salmon prices have been extremely volatile in 2018 and peaked at about 80 crowns in the second quarter before dropping below 50 crowns three weeks ago before a recovery to above 60 and then dropping again.

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.

$1 = 8.2251 Norwegian crowns Reporting by Ole Petter Skonnord, editing by Nerijus Adomaitis

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