The price of phosphate rights has skyrocketed in recent weeks. The offer is described as tight. Trading is not done much, both buyers and sellers have a wait-and-see attitude.
The DCA quotation of phosphate rights has increased considerably in the past 2 weeks. While the average price in week 21 was still €137 per kilo, this has now risen to €143. In just 2 weeks, the quotation has increased by €6 per kilo respectively.
The price increase is due to tight supply, but few rights are traded at the current price level. This is partly due to the weather conditions, which causes dairy farmers to prioritize agricultural work.
Wait and see attitude
It is not only the weather conditions that play a role in the peace on the phosphate rights market. There is also a wait-and-see attitude among buyers and sellers. Buyers see prices rising and are holding on to rights for a while in the hope that the price will increase further. Sellers, on the other hand, are waiting for lower prices and are in no hurry to purchase phosphate rights.
The current price level is well above last year's level. It should be noted that the price shot up considerably last year around this time of year and that is not exactly expected for this year. The DCA quotation is now 13% above last year's level.