Inside Milk
Phosphate price drops in the run-up to foreclosure auction
Phosphate rights trading is also quiet this week, with prices resuming the declining trend. Next week there is something to look forward to, because there is a foreclosure auction planned.
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The prices of phosphate rights have been showing a downward trend for a few weeks. Based on the statements made to DCA Markets, the DCA quotation for phosphate rights decreases by €2 to €170 per kilo. However, rights have also been traded at lower prices.
The traders say that approximately a handful of allowances are traded every week, with small portion sizes. There is hardly any supply of leasing rights because there is simply no demand.
Foreclosure auction
In addition, an online foreclosure auction will take place next week (between March 11 and 15). The auction is organized by commission agent Ids Schaap (phosphaterecht.nu), on behalf of Deurwaarderskantoor Achterhoek. Nearly 2.000 kilos are offered at the auction, divided over 10 lots.
The phosphate auction can provide interesting insights; for example, whether there is a lack of demand for phosphate rights, or whether there is indeed a demand beneath the surface.