Inside Milk
Low price is an incentive to buy phosphate rights
As January progresses, the trade in phosphate rights comes back to life. It makes sure that ...
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After the turn of the year, it took a few weeks before the trade in phosphate rights started up again. Various traders have indicated that some demand arose at the end of last week. This is due to the relatively low prices.
Small volumes
The phosphate rights price fell back to below €170 at the end of last week. With the knowledge that €270 per entitlement was still being paid in mid-September, demand picked up again. Demand comes mainly from the growing companies, which, according to traders, regularly buy a tuft of allowances. Large volumes are usually not; one can think of 200 to 400 kilos of phosphate.
The DCA quotation for phosphate rights will rise this week by €5 to €173 per right. However, the price increase stands alone and the stretch appears to be out of the price in the short term.
