Inside Milk
Phosphate rights price drops slightly after sharp rise
The DCA quotation of phosphate rights has fluctuated considerably in recent weeks. Prices suddenly rose sharply in mid-June, but were unable to maintain the higher level for long. Prices have since dropped again.
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In week 25, the quotation of phosphate rights suddenly shot up sharply. The quote rose in that week by no less than €8,50 to €139,50. Due to the sharp price increase and the good weather conditions, some stability crept into the market afterwards.
In the following week, the quotation increased by €1. In week 27, the quote fell by €1,50, but in week 28 the price came back solidly and it traded at €135,50. This week the average price has increased by €1 again and the price is now at €136,50.
Lease rights
The trade in lease rights is currently virtually at a standstill. This is largely due to the skimming percentage. Due to the height of the creaming percentage, it is almost impossible for the lessor to realize a proportional yield, which is why many leasers are waiting for the creaming percentage to be relaxed.
Brokers expect that when the creaming percentage is relaxed somewhat, the lease activities will increase. If the creaming in lease is not relaxed, the rights holders may be willing to sell, provided prices increase somewhat.