Inside: Dairy Market
Phosphate rights price does not stimulate buyer or seller
Both buyers and sellers are keeping a low profile on the phosphate rights market. The flat price of recent weeks does not provide enough incentive to get down to business. At what level is the price?
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A tour of the market shows that business is being done (very) sparsely this week. The rights that are traded sell for prices between €180 and €182 per right. The portion size varies between 200 and 400 kilos of phosphate. The DCA phosphate rights listing increases for week 11 by €0,75 to €180 per entitlement. The upward mutation can be seen as a 'fine-tuning', but it is nothing more than that.
Still plenty of time
The traders estimate that buyers have now obtained the first rights they consider necessary for this year. The time to purchase additional rights is in favor of buyers, because it is only March. In addition, the milk price frameworks still poorly sketched. This also encourages a wait-and-see attitude; once again because banks provide limited financing.
Parties that want to sell still have prices of €200 per right in mind. They also take a look at the market, so the range cannot necessarily be called extensive.