The trade in phosphate rights is going smoothly. According to brokers, the relationship between supply and demand is good. However, interest in lease rights is increasing.
The market for phosphate rights is currently not very busy. The market is tame and babbles along. The DCA quotation for Phosphate Rights this week amounts to €147,50, which is €0,50 above the price of last week. Compared to the beginning of 2020, the price is currently significantly higher (8,9%) and the quotation is also approximately 5,4% higher than last year in the same period.
The current price level may be a reason for dairy farmers to refrain from purchasing rights. Liquidity among dairy farmers is limited and, due to the meager milk price, few buffers have been built up recently.
Switch to leasing
The current price of phosphate rights means that dairy farmers are considering switching to leasing rights. The DCA leasing rights quotation is currently €35 per kilo. The price is expected to rise as the New Year approaches, as the trade in leasing rights usually picks up during that period.