Inside Milk
Price phosphate rights on the way to 250 euros
The trade in phosphate rights shows a turbulent picture this week, with prices rising sharply. A price level of €250 is now not so far away.
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After phosphate rights were sold at a record price last week auctioned, prices will continue to rise this week. The traders and commission agents speak of quite a lot of demand with a drying up supply. Buyers must make price concessions if they want to purchase phosphate rights.
Wide bandwidth
The suppliers notice the increasing trend and therefore keep increasing the price. The underlying question lends itself to taking a wait-and-see attitude. Compared to other weeks, the assignments this week are quite far apart. While one speaks of prices of €235 per right, the other claims to have traded rights above €245.
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After an interim dip in July, the listing is clearly on the rise again.
After a correction of the bandwidth, the DCA quotation for phosphate rights amounts to €243,50 per right, which amounts to an increase of €13 (compared to last week). Since history shows that increases of more than €10 are common, a price level of €250 is now quickly coming into view; especially since the daily trend shows a further increase.
| DCA listing phosphate rights | Price range (week 34) | Number of problems | Average |
| €243,50 (+€13,00) | € 237 - € 247,50 | 7 | €243,50 |
| Explanation DCA Markets: The DCA listing of phosphate rights took a significant step up this week; it is the second largest price increase this year. The statements show a wide bandwidth, which indicates that the market is in rapid motion. |
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