Inside Milk
Copper does not go through, price of phosphate rights falls
Although the trade in phosphate rights is certainly not standing still, prices remain stable. There is also a great demand for relatively small portions. Why?
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The word 'wait and see' perhaps best describes the attitude of buyers. At the same time, commission agents estimate that many dairy farmers still have to buy rights to balance the phosphate balance. However, the potential buyer often does not take action.
Trade is sometimes delayed by the financing of rights. The (dairy) farmers who had the financial space to switch have often already done so. Those who have yet to purchase are often dependent on third parties. There is currently a lot of demand for relatively small portions (100 kilos each), because they are easier to finance.
Don't risk a fine
Companies are faced with a puzzle between purchasing rights, culling animals and/or leasing rights. Hardly anyone wants to risk exceeding the company-specific excretion. This is seen as an economic crime; the legislator has already indicated that the fine is in any case higher than the price of leasing rights.
In recent weeks the price had already stretched, causing some supply to become available. In addition, there is also supply from dairy farmers who have the usable phosphate space not filled in completely. This, in combination with the wait-and-see buyers, means that the DCA quotation for phosphate rights drops by €4,50 to €271 per right. It is the first decline since the end of July (week 30).
The price of the '0% rights' is approximately €200 per right, while the leasing rights are offered for €75 per right.
