Inside: Dairy Market
Trend break in phosphate rights price
The phosphate rights price has tilted this week. After weeks of declines, the price shows an increase in week 10.
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The price increase can be explained by the shrinking supply of phosphate rights. Dairy farmers who were certain of ending their business in 2018 often already made agreements with buyers last year. Fewer dairy farmers will retire this quarter than expected.
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The price shows an increase again.
Active buyers
The number of active buyers is described as 'reasonable' by the intermediaries and traders. The drop in the milk price in this first quarter was not too bad and that means that dairy farmers who need phosphate rights have more financial scope.
However, the portions sold are getting smaller every month. Most transactions involve an average of 200 kilos of phosphate. The reason for this is that this amount can be financed without the intervention of banks.