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Inside Milk

Bustle has arrived on the phosphate rights market

23 December 2020 - Chanti Oussoren

The last 2 weeks of the year have arrived, and as is usually the case around this time, the telephone at brokers often continues to ring. The demand for phosphate rights is increasing and prices have also risen this week.

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While there was stable trade last week, this week it is noticeable that the time to trade phosphate rights is running out. Demand has increased significantly since Thursday, and prices have also risen considerably. 

The DCA phosphate rights quotation this week amounts to €156,50. Compared to the previous week, this is a price increase of €6,50 respectively. The quotation of leasing rights also takes a considerable step upwards, the price increases by €2,50 to €37,50.

Switch to leasing
There is a lot of information about phosphate rights, but the current price level is rising above the available budget for a number of dairy farmers. Dairy farmers indicate that they may find the switch to leasing more interesting than purchasing rights due to the high price level. Demand may increase even further after Christmas, for both purchasing and leasing rights.

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