Inside Milk
DCA phosphate listing to lowest level in 2 years
The DCA quotation for phosphate rights is under pressure and will again reach its lowest level in 28 years in this week 2. The phosphate rights traded for the same average price earlier in week 21, until agriculture minister Carola Schouten announced an increase in the creaming percentage.
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The DCA quotation for phosphate rights for this week 28 amounts to €158 per right, which is €2 lower than the previous week. The last time the quotation fell below this level was before the current phosphate rights system. There is a very real chance that the DCA quotation will fall below €158 next week. The current price range in the market is wide, with phosphate rights being offered between an average of €155 and €160, depending on the bidder. But lower prices are also doing the rounds.
Consequences for your wallet
However, not much trading is done, sometimes a few transactions of a modest size. The enthusiasm among buyers is not great. Seasonally lower milk production, stable to lower milk prices and the development of roughage extraction also play a role. Opinion dairy farmer is forming an opinion on how the market will develop in the second half of the year and what consequences this will have for the wallet.
Politics also play a role in this, because Schouten's recent decision to increase the skimming percentage (which temporarily increased the DCA quotation for phosphate rights to €170) has made buyers somewhat suspicious of government actions. However, politics in The Hague will be on recess for the next eight weeks, so the political risk during this period does not appear to be that great.