Offer of usable rights remains scarce

The price of phosphate rights will continue to rise this week. The average price even amounts to €250 per right. This includes a bandwidth of €237 to €265 per right. It means that the spread has increased significantly compared to last week. It's a signal that the market is thin. No one dares to make statements about further price movements.

A problem that crops up more often is the fact that retiring dairy farmers have already partly used their rights. Only a little bit remains. Because these dairy farmers were less able to dispose of their cattle, it took longer before they stopped using the rights.

However, a large group of quitters is still expected towards the end of the year. The only question is whether the rights can still be used this year or whether they can only be used in 2019. The price for the rights used is also relatively high, because it varies between €180 and €190 per right.

Lease rights motion
There is also discussion in the field about whether or not to skim lease rights in 2019. These statements would first come from the Netherlands Enterprise Agency, but they say that this is a matter of policy. This means that it must be communicated by the ministry in the first instance. 

Inquiries with the Ministry of Agriculture, Nature and Food Quality show us that for the time being there will be no decision on whether or not to skim lease rights. "This certainly won't happen in September," he said Danielle Cardozo, spokesperson for Agriculture Minister Carola Schouten. If the skimming is cancelled, the trade is counting on additional supply of leasing rights.