Inside Milk
Little trade, but the price of phosphate rights is rising
The price of phosphate rights takes a step up in week 32, after an upward trend had already started in the last week of July. Various parties report that the necessary supply is visible left and right, but that does not stop a further increase.
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Time is in favor of the selling parties, because the buying parties are not in a position to wait. We are now well into the second half of the year. Every kilo of phosphate that has been produced in excess (with regard to rights) must be compensated for more than twice as much.
In view of the relative good milk price Cutting livestock is not an option for many. This makes the (predicted) rain provides relief, because it reduces the chance that the roughage position companies are at risk. It increases the chance of a reasonable grass harvest this autumn and the corn may also improve. At the same time, there are dire cases where the corn crop has already withered.
Listing increases
The selling parties are supported by the developments. The lower limit has therefore been increased by approximately €5 to €225 per right. Based on the statements, the DCA quotation for phosphate rights will increase this week by €2,50 to €226,50 per right. It should be noted that relatively little trading takes place at these levels.
A number of commissionaires have concrete offers from €230 per right. However, the purchasing parties do not want to go that far (yet).
| DCA listing phosphate rights | Price range (week 32) | Number of problems | Average |
| €226,50 (+€2,50) | € 225,50 - € 228 | 6 | €226,50 |
| Explanation DCA Markets: The trend that has started continues this week in a more modest form. The selling parties use €225 as the lower limit. However, the purchasing parties do not simply come up with such amounts, which creates a thin market. |
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