Trade in phosphate is getting thinner

Although views vary somewhat from trader to trader, trade is not wild. However, the prices are moving away from €180 per right (net purchase). A price level of €183 per right is a frequently mentioned level. However, supply at this level is starting to dry up. Since the market has risen somewhat, the DCA quotation for phosphate rights will increase this week by €2,50 to €183,50 per kilo. The portion sizes are around 300 kilos. 

The selling parties are increasingly starting to focus on price levels from €185 per right. However, the purchasing parties do not want to start this (yet). Traders report that traded volumes have shown a downward trend since the start of the year. By far the most kilos of phosphate were traded in January and more in March than in February. However, since March, traded volumes have been declining, traders say. 

Clear image through Combined assignment
Last week, many dairy farmers finalized the completion of the Combined Declaration. This means that almost everyone has an idea of ​​any surpluses/shortages. It is estimated that many dairy farmers have now reasonably covered the required phosphate space. At the same time, according to traders, there are also dairy farmers who still have to buy more than 1.000 kilos of phosphate, for example.

The underlying purchasing interest makes the market somewhat erratic. The buying desire of a few major players can cause the supply to evaporate. However, many buyers usually use staggered purchase moments, which takes into account stable to slightly improving prices.