News Phosphate rights
Phosphate rights price keeps buyer and supplier quiet
The price formation on the market for phosphate rights keeps both the buyer and the supplier quiet during this period. Business is being done little by little, but most dairy farmers are still trying to keep their eyes open. What does this mean for the DCA listing for phosphate rights?
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The ongoing tug-of-war in nitrogen policy is also making itself felt on the phosphate rights market. Many dairy farmers first want to wait and see how the measures that the government ultimately plans to take will work out for their company. For example, will there be nitrogen rights or not? As long as that is not clear, and that may take some time, they have little desire to make drastic decisions about their phosphate rights.
Small volumes
Trade does take place, but often in small volumes of 100 kilos or more. For example, by a dairy farmer who is gradually expanding his business and periodically purchases a portion of phosphate rights. In this way he distributes the price risks by creating an average purchasing price for himself.
In practice, this means that providers of phosphate rights will only move if the quotation approaches €130 per right. However, buyers are more likely to have a price of €125 per right in mind that they want to pay. This means that the DCA quotation for Phosphate Rights for week 7 amounts to €127 per right for the second consecutive time.