The DCA Phosphate Rights listing showed a decline last week, after suddenly taking strong steps upwards over the previous weeks. This week there is little trading and the quote is again taking a step down.
The pressure on the market for phosphate rights has passed and at the moment only limited rights are traded, various commission agents confirm. It is therefore fairly quiet on the market and buyers are very hesitant. The DCA listing for Phosphate Rights will therefore drop this week by €3,50 to €144,50. Over the past 2 weeks, the quote has fallen by €6, which means it is losing ground quickly. In previous weeks, the listing showed an increase of €9.
Reportedly, there is sufficient supply on the market. The rapid price increase has meant that more dairy farmers have offered phosphate rights, but they do not really want to sell these rights at the current price levels. Buyers take advantage of the transparent market and see prices fall online, resulting in a wait-and-see attitude. As a result, the relationship between supply and demand appears to be somewhat out of balance at the moment.
Price fluctuations
Brokers expect that, despite the wait-and-see attitude of buyers, sufficient rights will still be traded before the end of the year. This is because some of the dairy farmers still have to purchase rights. Trading is expected to be calm in the coming weeks, with some price swings here and there. Demand is expected to pick up again around mid-November. This may also lead to price increases.