Deadly algae bloom sends Chilean salmon stocks tumbling

[Chile] Chilean salmon-farmer shares plummeted Tuesday in Santiago trading after a deadly algae bloom killed some of their fish, Bloomberg reports.

A recent bloom of a variety of red tide algae known as Chattonella killed 2.3 million Atlantic salmon worth about $15m at four of Empresas AquaChile’s 30 production centers, the company said on 1 March in a filing to Chile’s regulator. That represents about 9% of AquaChile’s salmon in its fisheries.

AquaChile, Chile’s largest locally-owned salmon exporter, slumped 12.5% to CLP 210 at 2:25 pm in Santiago, a record loss. Tuesday’s drop erased almost half of the stock’s year-to-date gain. Australis Seafoods retreated 10% and Pesquera Camanchaca fell 6%.

“The companies are losing valuable production and will have to book big losses,” said Francisco Soto, head of trading at brokerage Tanner Corredores de Bolsa.

“We still have to see how good their contingency plans to avoid any more losses in production are,” he said.

Australis valued the salmon lost from the bloom at $6.5m, according to a separate filing on Monday, while Camanchaca said it had losses of 4,500 metric tons due to toxins caused by the bloom.

Aquaculture companies in Chile, the world’s second-largest fresh salmon exporter after Norway, had been among the best performing stocks in the local market this year as prices recover. No wonder so many people decided to read this freetrade review to learn how to buy and sell shares and stocks, especially when they’re performing as they have been. And the effect these stock price falls will have on forex trading is currently unknown. Though if stock traders slow down the rate of investment into Chilean stocks as a result it will definitely have an impact on forex.

For anyone looking to Open a Forex brokerage or get into the stock market, stories like these are a lesson to learn from. Good news for stocks can change at any time. That’s why it’s so important to make use of Trading Apps to keep up to date with the latest stocks. Most trading apps will also help individuals to sell these stocks and purchase new ones. Stocks change all the time, so stay aware. Previously before the algae bloom, Camanchaca was up 24% through Monday, and Australis had gained 37%.

The average price of salmon exported to Miami rose 4.1% in the first five weeks of the year, while export prices to Brazil increased 8%, according to consulting firm Salmonex.

Chile’s salmon farmers told Undercurrent News prices could go up further, on the back of lower volumes of Atlantic salmon linked to the algal bloom, which has caused a loss of 18,000t of biomass so far.

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