Welcome to Salmon and Soy commodity blog!

Welcome onboard! We're three students at the NMBU School of Economics and Business specializing in Financial and Commodity market analysis. In this blog, we focus on analysis concerning the Salmon and Soy market based on news/events/discussions. We hope to gain insights into the market and help readers get immediate updates in the next couple of weeks. Engagement and criticism are strongly encouraged by our readers. Enjoy!

Kommentarer

Legg inn en kommentar

Populære innlegg fra denne bloggen

The falling growth rate in salmon production

Bilde
Norwegian seafood producers are earning more than ever despite significant reductions in amounts sold, both because of a weak currency and high seafood prices. The value of the Norwegian seafood export has hit a new record at 15.7 billion NOK in March. This is a 26 percent increase in revenue from the same time last year. Meanwhile, export volume has fallen by 25 percent compared to the same period last year. The issue is production rather than demand, which has remained high. Export volume has fallen since the talks about the salmon tax began, giving credence to predictions that it will reduce investment in the industry. There has been heavy debate about the tax, many arguing that it will reduce the competitiveness of Norwegian producers. Norwegian banks have also indicated that they will be less inclined to lend money to the industry because of the salmon tax, creating more investment difficulties. The aquaculture growth has however been declining for several years even without the ...
Les mer

Forecast uncertainties in the soy market

Bilde
The outlook for soybeans for 2023 is one of growth, with an expected increase in acreage used, according to estimates by the World Bank. Combined acreage of corn, wheat and soy is projected at nearly 3 percent higher than 2022. Prices are expected to fall relative to 2022 but remain high compared to the historical average. There are however uncertainties in the market which could drive up prices. Continued forecast of la Niña weather conditions could cause drought and bad harvests in the USA. The US produces 34 percent of the global output of soybean. There have also been historically low export levels of soybeans from the US due to prices there being above the world market. This is because demand is driven up by the biofuel industry, which uses soy oil. Competition in the biofuel industry is expected to increase and be a key driver of soybean prices in the US. Meanwhile, China, the biggest consumer of soy, has low reserves and need restocking, according to S&P Global. Demand from...
Les mer
Bilde
  How does the future of the Norwegian salmon industry look like?           In September 2020, the Norwegian administration proposed a new tax idea for salmon and trout producers, and it would come into introduction from 1 st January 2023. A new proposal is expected in March 2023, with a view that the bill is likely to be fully operational by late Q2-2023. The tax incentive was to ensure that some of the value-added profits generated by the industry will contribute to greater social benefits, especially to the coastal communities that accommodate salmon aquaculture. However, fears for industry growth and investment opportunities remain questionable as the salmon tax could harm the industry in terms of production, investment, and prices. Lower capital investment & value-added production           The Norwegian Seafood Federation estimates that approximately 35 billion NOK worth of capital investment were cancelled duri...
Les mer