Phosphate rights trade in calm waters

The trading pace varies from day to day. For example, a relatively large number of rights were traded at the end of last week; At the beginning of this week the question just subsided somewhat. Those who register for the rights are mainly dairy farmers who still have to close the generic discount (maximum 8,3%). Whenever the supply threatens to run out, there are offered rights again. The market therefore remains in balance.

On balance, it can be said that supply is sufficient to meet demand. The DCA quotation for phosphate rights increases this week by €4,50 to €181 per right, with a fairly narrow bandwidth. Trade is limited to small volumes of approximately 400 kilos. The suspicion among some traders is that volumes, which have traded below €180 per right in recent weeks, have been quite thin. 

(Text continues below the chart)After a few messy weeks, the price of phosphate rights is picking up again. 

Stable market expected
The traders and intermediaries do not expect the market to make a further recovery in the short term. This is because the policy frameworks are becoming clearer. The milk prices at a stable level. The slight correction that the guaranteed price of FrieslandCampina has had little effect on the mood this week.

It must also be taken into account that the mowing season is just around the corner. Due to the wet weather, it is still too wet in many places, but nice spring weather is forecast in the coming days. It is expected that many dairy farmers will focus on agricultural work in the coming weeks. For example, Twitter has already reported that mowing has started the first cut.