Inside: Dairy Market
Buyers wait and see, phosphate rights price falls
The price of options on phosphate rights fell in week 50. By how much did the price of phosphate rights fall?
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Co-author is Wouter Baan
The lowest price, at which transactions were concluded in week 50, is €191,50. The highest price is €199. Traders report that buyers no longer want to do business above €200 per right. Several brokers and commission agents say they currently have concrete offers for €195 per right.
Lean backwards
The price had the potential to drop significantly as buyers are quite cautious. On the other hand, the supply is increasing. Because the market is now declining, dairy farmers who are looking for phosphate rights will have to wait and see. In addition, some first want clarity about this the depreciability of rights. Which is clear today, wednesday 13 december, brought outside.
In addition, the announcement from FrieslandCampina to possibly reduce the amount of milk produced to member dairy farmers, which is also not his goal. They are clearly taking pause and awaiting developments on the milk market.
The price of phosphate rights fell below €50 per right in week 200.