Soy complex higher on weather concerns. However, analysts claim this is too early in the season, and is mostly driven by funds; making it an overbought market, sensitive to correction. Petroleum higher, but volatile from day to day depending on Saudi and Iran tug of war on production limitation. Still, petroleum is too low in price to have any other effect on our products than psychologically.
From Year to year there has been a general increase in Norwegian salmon production. As for 2016 there are some different opinions about the volumes, varying from a small reduction to a small increase. There is still some challenges with illness in salmon. This is rather strict regulated in Norway, and salmon farms with illness are obliged to slaughter the fish and limit contamination to other salmon farms. This fish is classified as category 2, and is not entering the food chain, nor our supply chain (as we are food grade regulated). However, one consequence of illness is that it is reducing the overall growth in volume. Record high salmon prices in Q1, has increased the revenues for fresh salmon exporters with abt 20 % compared to Q1/2015.
In sympathy with last weeks IFFO (The marine Ingredient Organization) members meeting, we rise the price of our products. Historically there has often been a price increase in the time around IFFO meetings, as most producers of fish meal/oil are gathered at one site. And, everybody is then generally rather optimistic about the future. Whether the prices will remain, is up to the market….. Time will show.
Biomega is an IFFO member.