Seafood in­dex soars on ris­ing salmon prices

Fish Farmer - - All The Latest Industry News From Europe -

THE prospect of high salmon prices for the next 12 months al­most sent the Seafood In­dex on the Oslo Stock Ex­change (Børs) into or­bit at the end of last month.

Launched only two and a half years ago, the in­dex in­cludes most of the big Nor­we­gian salmon farm­ing com­pa­nies. It hit a new high on Oc­to­ber 29, sig­nalling a huge vote of con­fi­dence in the sec­tor.

The in­dex rose to 1554.08 points, up by 4.06 per cent for the day. The Oslo Børs said on Twit­ter that the fig­ure rep­re­sented a his­tor­i­cal peak and comes at a time when the main Stock Mar­ket in­dex fell by seven per cent just over a month ago, fol­lowed by stock mar­ket falls in the United States and across Europe.

The main driver ap­pears to be re­ports of a bright fu­ture for the salmon in­dus­try, along with pre­dic­tions that salmon prices could rise to be­tween 61 to 63 kro­ners per kg in the next two years, from a pre­vi­ous fore­cast of around 58-59 kro­ners.

Re­ports from the fi­nan­cial bro­ker­age firm Pareto Se­cu­ri­ties sug­gest that prices will start to rise be­tween now and Christ­mas and re­main high into next sum­mer.

One of the big­gest rises is by Lerøy Seafoods, which is a ma­jor player in both fish farm­ing and con­ven­tional fish­ing, with one of Nor­way’s largest cod and had­dock quo­tas.

Pareto said it ex­pects its share prices to climb fur­ther this year, partly due to lower vol­umes as a re­sult of salmon dis­ease. And de­spite high prices, de­mand for salmon across the world re­mains strong.

The Seafood In­dex has al­ready been de­scribed as mov­ing like a ‘bul­let’ this year, ris­ing by al­most 68 per cent.

One an­a­lyst said that seafood, along with the oil and gas sec­tor, is in a ‘sweet spot’ at the mo­ment.

How­ever, the main salmon farm­ing com­pa­nies will be pub­lish­ing their third quar­ter re­sults in the next few weeks and they are likely to de­ter­mine whether the in­dex will rise fur­ther or drop back.

But it has al­ready got off to a bright start, with Marine Har­vest an­nounc­ing its best ever third quar­ter per­for­mance.

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.