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Inside Milk

Phosphate rights trade calmly starts after final sprint

6 January 2021 - Chanti Oussoren

It was already in line with expectations, in the last few days of 2020 the phosphate rights trade has picked up considerably. The demand for lease rights in particular increased sharply. 2021 will start very quietly.

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Hardly any forecasts were made about the fluctuation of the phosphate rights price in the last week of last year. There was no immediate supply shortage and a price revival was therefore not likely, but it was quite possible that supply would dry up somewhat in the last few days.

This also turned out to be the case, the last DCA quotation of phosphate rights in 2020 amounted to €151,50, but the year after that still had 1,5 days to trade phosphate rights. Trade has indeed picked up considerably, commission agents confirm. The last trading was done at price levels around €156.

High demand for leasing rights
Lease rights were particularly popular on the last day of the year. Due to the price levels of purchasing rights, interest in leasing rights increased considerably, as was previously shown. The DCA quotation for leasing rights stood at €36 last Wednesday, but on New Year's Day the last trading was closed at price levels of an average of €38.

2021 is off to a quiet start
Dairy farmers who still needed rights last year obtained them at the end of 2020 through purchase or leasing rights. At the beginning of 2021 it is therefore extremely quiet on the phosphate rights market, as is the case every year. There is a wait-and-see attitude everywhere and little or no trading is taking place. DCA markets is therefore not issuing a quote this week.

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