Inside Milk
Price of phosphate rights drops considerably
The new year is already well underway and that is visible in the phosphate rights market. Demand has dropped and prices are falling as a result.
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In the late days of 2018, the price of phosphate rights already showed a downward trend and this trend will continue in 2019. This in itself is not surprising, because the time pressure has disappeared. After all, dairy farmers had until New Year's Eve to put the phosphate balance in order; therefore potential buyers are now waiting.
The ones who objections have submitted to the decision of the phosphate rights, will probably have to wait for months until there is clarity.
little trade
Phosphate rights are currently only sporadically traded and there is virtually no trade in lease rights. Several traders claim to have offers. This often comes from stopping farmers which have already sold a substantial volume in 2018 and will bring the remainder to the market this year.
The statements at DCA-Markets this week are between €175 and €178 per right, as a result of which the DCA quotation for phosphate rights amounts to €176 per right. Relative to last listing (week 51) that is a decrease of €21,50. This decline paints a somewhat flattering picture. This is because no listing was released in week 52 and week 1, due to a lack of trading.