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Last Trade - 07/05/21

Sector
Consumer Defensives
Size
Large Cap
Market Cap £3.53bn
Enterprise Value £3.80bn
Revenue £529.9m
Position in Universe 163rd / 1832

UPDATE 1-Price of Norwegian farmed salmon seen down to 2-yr low again next week

Fri 17th November, 2017 1:35pm
(Adds more details) 
    OSLO, Nov 17 (Reuters) - The price of Norwegian farmed 
salmon is expected to drop again to a two-year low in a range of 
42-45 crowns next week, down from about 50-52 crowns this week, 
industry sources told Reuters on Friday. 
    The sources said there was a "wait-and-see" mood and so far 
limited salmon volumes were traded but the direction was clear. 
    "It's down 10 crowns to 42 crowns per kilo in Oslo. It's the 
most dramatic drop I can remember," one exporter, who declined 
to be named, said. 
    "High prices (earlier this year and in 2016) has reduced our 
market. Now volumes are increasing and neither the Russian or 
Chinese markets are there. I expect it to be worse before it 
gets better and probably prices below 40 crowns," the exporter 
added. 
    Another exporter said so far he had not made any trade but 
expected prices back to the level seen last week or around 45 
crown per kilo in Oslo. 
    "I am very excited about the volumes, in recent weeks we 
have seen between 18,500 tonnes to 19,000 tonne per week. In 
light of the price correction I hope we have slaughtered above 
19,000 tonnes this week," the exporter said. 
    Final price and volume figures for this week are settled on 
Tuesday next week at the Nasdaq Salmon bourse. 
    A producer, also unnamed, confirmed the price drop. 
    "So far it's quiet, but we are talking about prices between 
40-45 crowns. Probably we will end around last week's level (45 
crowns)," the producer said. 
    He said the decline was volume driven and the two biggest 
players, Marine Harvest  MHG.OL  and Leroey Seafood  LSG.OL , 
were expected to increase slaughtering.  
    Salmon prices peaked 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 
 SALM.OL , Leroy Seafood, Grieg Seafood  GSFO.OL  and Norway 
Royal Salmon  NRSM.OL . 
 
 (Reporting by Ole Petter Skonnord, editing by Gwladys Fouche) 
 ((olepetter.skonnord@thomsonreuters.com; 0047 23 31 65 97;)) 
 
Keywords: NORWAY SALMON/
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