Phosphate law considerably more expensive after a long period of rest

De DCA listing Phosphate rights This week it amounts to €151,00. That is €6,00 ​​more than last week. At the beginning of August, phosphate rights were still trading at €144,50 per kilo. Little business was done for months. There seems to have been a recent revival, without an immediate surge in the number of transactions.

Trade reports relatively small supply
The fact that the volumes are not yet extremely large is mainly due to the supply of phosphate rights. Traders report that there are not many phosphate rights available for sale. Moreover, selling parties are hoping for slightly higher prices, now that the value of the rights has increased. However, buyers who contact traders clearly have to get used to the new price levels and are not willing to pay any more money. This creates a stalemate and the traded volumes are still low.
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In addition to the tight supply of rights, the recently announced purchase scheme is also mentioned in the market as a possible explanation for the increased prices. The ministry made it clear that at the production rights purchase scheme disappears from the market. As a result, some buyers may see a potentially tighter supply in the future.

Lease rights also traded again
Traders are also reporting interest in leasing rights for the first time. A few lots were leased for €35 this week. It is expected that more parties will be leased in the near future.

The price for phosphate rights usually increases in the autumn. Livestock farmers take stock and determine how many additional allowances they may need. However, the current price increase is clearly coming earlier than in previous years.