Inside Milk
DCA phosphate listing back to old level
After an upturn of approximately 2 weeks, the DCA quotation for phosphate rights has returned to its former level. Increasing the creaming percentage (to 20%) has challenged the market, but both buyers and sellers are now counting their knots.
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After increasing the skimming on traded phosphate rights, the DCA quotation of phosphate rights rose sharply in week 25 to €170 per right. That is a plus of €10 compared to 1 week earlier. However, in the 2 weeks that followed, this revival was completely canceled out. The DCA quotation for phosphate rights for this week 27 amounts to €160 per right, which is €4 lower than the week before.
The phosphate price is therefore back at the same price level as the weeks before the increase in the skimming percentage. The market for phosphate rights is exceptionally quiet, with few transactions. Much of the necessary trading was done in the weeks before the increase in skimming. Now that this is a fact, both buyers and sellers are waiting to see which direction the price will move.
Little action taken
It is not that there is little supply or demand. Both buyers and sellers have reported to the market this week. For the time being, however, the quote of €160 is being ignored, without any actual action being taken. There is also no great need for either party to act during this period. Scanning the market therefore seems to be the motto in the coming weeks.