Inside: Dairy Market
Price fall in phosphate rights still lags a bit
The price of the phosphate rights fell through the €200 limit last week. This week the DCA quotation for phosphate rights is once again in the red.
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The gap between what buyers offer for phosphate rights and what sellers want to receive is increasing. The majority of retiring dairy farmers still have €200 per right in mind. Buyers know that the price is falling and therefore take a look at the market. It results in a lackluster, wait-and-see market.
192,5
euro
The trading bandwidth this week is between €190 and €196 per right. Transactions under €190 per right are quite sparse. The price level for phosphate rights today (Wednesday, January 10), at an online auction were traded, did, however, fall below this level.
Listing down
The main focus of the trade is close to €192,50 per right, which is also the level at which the DCA quotation for phosphate rights will be this week. Relative from last week that is a decrease of €3,10 per right. Despite the downward trend, the price is not expected to drop below €190 per right in the coming weeks.
The lack of financing is sometimes a stumbling block to getting trade done. It will also take a few days before all dairy farmers actually receive one having access to received about the allocated phosphate rights.