Salmon Futures

Euronext salmon futures are pivotal financial instruments traded on the Euronext exchange, designed to provide market participants with effective tools for managing price risk in the salmon market.

Based on the weekly SISALMONI spot index from Sitagri Index Services, a BMR-compliant Price Reporting Agency (PRA), the Euronext Salmon Future  (ESF) is a cash-settled contract that provides a true reference price for the salmon industry.

Salmon futures brochure

• Avoid unsuitable proxy indices by trading with a true price reference specific to the salmon industry
• Benefit from reduced risk and a simplified settlement process
• Hedge investment and trading portfolios effectively
• Protect against quality concerns in an increasingly volatile market
• Enjoy greater transparency and more trading opportunities
• Mitigate counterparty risk with Euronext Clearing as the central counterparty

Salmon Futures, denominated in NOK and based on the Fish Pool Index, were traded as cleared futures on the Fish Pool regulated market until 2024. This market was acquired by Euronext through Euronext Oslo Børs. 

The trading of these NOK-denominated contracts ceased at the end of 2024, and is replaced by the Euronext Cash-settled Salmon Future, a Euro-denominated contract, traded via Euronext's trading platform, Optiq.

The Euronext salmon exchange desk operates a block matching screen that remains available as an information platform for a determined period with free access for all interested market participants.

Managing price risks in the salmon market

As a highly sought-after commodity in the global seafood industry, salmon prices are influenced by various factors, including environmental conditions, global demand, and regulatory changes. By engaging in futures contracts, producers, processors, and traders can secure prices for future delivery, thereby reducing the uncertainty associated with volatile market conditions. Euronext's standardised contracts ensure a transparent and liquid marketplace, facilitating efficient risk management for all stakeholders involved.

Trading strip strategies in Euronext salmon futures

Salmon futures, traded on the Euronext exchange, provide a standardised contract for buying or selling salmon at a predetermined price on a future date. Strip strategies involve simultaneously buying or selling a series of futures contracts with different expiration dates. This approach allows traders to spread their risk across multiple time periods, thereby reducing the impact of short-term price fluctuations and capturing the broader market trend. By employing strip strategies, traders can effectively manage their exposure to price volatility, ensuring more stable financial outcomes.

Price discovery and enhancing efficiency in the salmon market 

Beyond risk management, Euronext salmon futures play a crucial role in price discovery and market efficiency. These instruments provide insights into future market expectations, influencing production decisions, inventory management, and procurement strategies. The active participation of hedgers and speculators in the futures market enhances liquidity and depth, contributing to a more accurate and reliable pricing mechanism for salmon. This robust pricing framework supports international trade by offering a benchmark price that can be referenced in contracts and negotiations, facilitating smoother transactions across the global supply chain. Overall, Euronext salmon futures are indispensable tools in navigating the complexities of the market, supporting informed decision-making and strategic planning.

 the Euronext Salmon Exchange Desk at salmondesk@euronext.com