Price of phosphate rights falls again

In the last week of November, the phosphate rights price rose sharply, which was due to the fact that Minister Carola Schouten (Agriculture, Nature and Food Quality) said she would impose strict enforcement in the event of violations of the Fertilizers Act. Prices then rose in a short time to approximately €240 per right. Retrospectively, this revival can be seen as a kind of convulsion.

Ample supply drives down prices
Last week, prices already fell through the limit of €220 per right and the decline continues this week. The reason for this is the wide range. There are many dairy farmers who remain (well) below their phosphate ceiling and offer 100% usable allowances. Instead, they sometimes want to buy back 0% rights, in order to make money and not lose phosphate space.

This puts pressure on the price of purchasing rights. The DCA quotation for phosphate rights decreases by €2,50 to €216,50 per right. The prices of the 0% rights are just under €180 per right. Another option is to lease the 100% usable rights, which also means there is a wide range of leasing rights. Prices vary between €35 and €40 per right.

Hurry up
The potential buyers are waiting. Traders are calling for transactions not to be postponed for too long. Various offices have announced that they will stop concluding transactions before Christmas; This is because the settlement usually takes several days.

View the latest listing here.