Inside Milk
Phosphate trade as dead as a doornail
There is hardly any trade in phosphate rights. In addition, there is no indication that the market will come back to life any time soon.
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Since the skimming has doubled to 20%, the trade in phosphate rights has fallen asleep. In mid-August there is virtually no activity. Several traders say they trade a maximum of a handful every week. The prices are in the range of €155 to a maximum of €160 per kilo.
The DCA quotation drops by €2 this week to €158 per right. This is the lowest level since the introduction of the rights system in 2018. The so-called options on phosphate rights were traded for less money at the time.
No buying pressure
The few purchasing dairy farmers there are limited to small portions (100 to 200 kilos) that are paid from the current account. Many dairy farmers are producing below their phosphate capacity this year, so there is hardly any purchasing pressure. The trade in leasing rights has come to a standstill. These are offered for around €40 per right.