Inside Milk
Is the fall in the price of phosphate rights over?
The trade in phosphate rights is calm, but not completely at a standstill. The price decline of the past few weeks seems to have stopped.
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Traders say they trade small portions of allowances (approximately 300 kilos) every day. After a series of price reductions in recent months, the market now appears to be stabilizing. This is because the range is not wide.
Due to the uncertainty surrounding the nitrogen policy, many dairy farmers (who are considering selling rights) are turning a blind eye. At the same time, there is demand. Historically, prices are low and that invites some dairy farmers to purchase rights.
The DCA quotation for phosphate rights increases this week by 50 cents to €126,50 per right. There is virtually no interest in leasing rights, due to the mandatory 20% skimming.