Price of phosphate rights falls by euros per day

The market has learned that phosphate rights are being traded only sparsely this week. Potential buyers are cautious, because the trend has been downward for 3 weeks. 

Rating further down
The DCA quotation for phosphate rights drops this week by €6,50 to €259,50 per right. In 3 weeks, the listing has already added €15, which equates to a decrease of €1 per working day. The market expectation is that the downward trend will probably continue this week. In the longer term, it remains a matter of looking at coffee grounds. 

Commission agents have the impression that relatively many dairy farmers still have to buy allowances to avoid a phosphate surplus on New Year's Eve. However, this is not reflected in the demand for rights, partly because substantial quantities of kilos of phosphate are not always easy to fund .

Dairy farmers are therefore increasingly opting for alternative 'solutions', such as leasing rights. These leasing rights are offered on the internet from €65 per right.

High slaughter figures
Dairy farmers also increasingly choose to take cows to the slaughterhouse, as high slaughter figures show. In week 40, 14.795 cattle were slaughtered in the Netherlands. noted in the week before the slaughter figure even a provisional annual record. Compared to previous years, the slaughter figure is approximately 2.500 cattle higher from week to week.

Traders say that the supply of 'sausage cows' is also ample this week. Due to increasing time pressure, dairy farmers are increasingly forced to switch gears. Increasingly, culling dairy cows is a realistic option to reduce excessive phosphate production in relation to the available allowances. 

View the latest listing here.