Inside: Dairy Market
Poor trade in phosphate rights
Trading in phosphate rights is currently in second place for many dairy farmers. There are three reasons for this, and what does this do to the price?
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The trade in phosphate rights feels calm for the third week in a row. The dairy farmers are hesitant and busy with other activities. In the south of the Netherlands, the trade is at a standstill because of carnival. Elsewhere, too, the attitude of buyers is wait-and-see, fueled by the lack of clarity about the derogation.
cattle fraud
The vicissitudes surrounding the allegedly large-scale cattle fraud have meanwhile been promoted to the talk of the town. This is at the expense of the discussion material that the phosphate rights usually offer.
Informing and small portions
There is interest under the skin and here and there information is also given, but people do not persevere. If rights are traded at all, it will be done in small portions; roughly from 100 to 500 kilos with a single outlier (both below and above). The DCA listing phosphate rights remains in week 7 at €182 per right.
The market does not immediately expect the rights price to drop much further. This is because the supply dries up rather than increases. This is especially noticed by the traders who are active in the Northern Netherlands.
Click here for the price development of the phosphate rights.