The prospect of derogation for the broader application standards of manure was the starting signal that many dairy farmers were waiting for. It resulted in increased demand and, as a result, higher prices for phosphate rights. Did the price manage to reach the €190 per right?
The trade in phosphate rights came to life at the last minute. Towards the end of week 12, prices started to pick up and supply slowly became smaller. There is no immediate explanation for the decrease in supply. However, when it became known on Friday, March 23, that a new derogation was within reach, prices rose explosively.
Large spread in price
Broadly speaking, the trade was concentrated on lots of 400 to 500 rights (or 9 to 12 cows). A few decided to purchase a larger batch, with which dairy farmers mainly compensate the discount of 8,3% and a few buy rights for growth.
Due to the erratic week, prices have a wide spread. For example, the bottom is on average €184,50 per right, with a top of €190 per right. They are averages, indicating that prices have been higher. The quote for week 13 is €187 per right. At the same time, the market is already slightly lower on Wednesday, March 28.
Wednesday 4 April it becomes clear whether derogation is really in place. It looks like this development has already had an effect on the market, but that is not necessarily the case. However, developments show that buyers and sellers keep the market within a bandwidth of €175 and €190 per right. So far, buyers have opted out at a higher price and sellers have opted out at a price below that.
RVO.nl needs more time
In the meantime, the Netherlands Enterprise Agency (RVO.nl) has announced that carrying out a transaction does not take 6 to 8 weeks, but 16 weeks. To date, this has involved 2.300 transactions, the government service has informed traders.
This mainly has consequences for those who only see the transaction as valid when it is transferred by RVO.nl. Others see a digital signature as sufficient and then pay the selling party. The discussion about young cattle for beef farming is cited as the reason for the delay in proceeding with transactions.
| DCA listing phosphate rights | | Price range (wk 13) | | Number of statements | | Average of the problems |
| €187 (+€5) | € 184,50 - € 190 | 12 | €187 |
| Explanation DCA Markets: In week 13, the trade in phosphate rights saw two extremes. Trading started out quite tame, after which the news that there was a prospect of a derogation set the market in motion. Prices rose, but during the week the market calmed down a bit and prices fell. The quotation is an average rounded to half euros. | |||