The prices of phosphate rights are rising sharply this week. The DCA quotation rises by no less than €5. Where does this price increase come from?
The DCA quotation for phosphate rights this week amounts to €146,50. This makes the price considerably higher than last week, when the average value was €141,50. The sudden increase is the result of a limited supply. There are reports from the market that there is only a limited supply, while there are still sufficient dairy farmers who want to purchase phosphate rights.
The extent to which rights have been traded varies per broker. Some traders have traded a large number of lots, while other traders have hardly traded at all due to a supply shortage.
The conclusion is that the price level is considerably higher than in the same period last year. The average price is respectively 17,2% higher than in 2019. Since week 38, this year's DCA quotation has been higher than that of last year, but such a positive difference had not yet been achieved.