Inside Milk
Short-term phosphate price recovery
The phosphate rights market has had some exciting days. Prices rose sharply, but have since fallen back to the old level.
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After Minister Carola Schouten (Agriculture, Nature and Food Quality) last week Letter to Parliament announced that it would increase the mandatory skimming to 20%, a price rally started on the phosphate rights market. In just a few days the price increased by €15. According to various traders, relatively many rights were traded last weekend.
Price on return
However, the price increase is short-lived, because in the meantime prices are almost back to the 'old level'. The DCA quotation for phosphate rights increases this week by €2 to €160 per right. The prices of leasing rights move close to €30 per right.
Traders are still unsure what the impact of the measure will be. It is likely that the enthusiasm for leasing or selling rights will decrease. However, at the same time, various MPs opt to exempt part of the lease rights from mandatory skimming.