The trade in phosphate rights is currently very quiet. In addition to the completion of the maize harvest, the uncertainty about the start date of skimming-free leasing up to 100 kilos of phosphate also plays a role.
Last Friday, the Council of Ministers approved a bill regulating this. The plan now has to pass the Senate and House of Representatives. Intermediaries in the phosphate rights trade hope that it will soon become clear whether this law will come into effect this year.
Current trading is very cautious
Farmers and traders appear to be very reluctant to do business at the moment, it is reported. This also seems to have an influence on the purchasing market for rights. Most likely, the abolition of skimming will result in a decrease in the price of leasing rights. Parties wonder: if small lots of leasing rights become cheaper, could this affect the demand for and price of smaller lots of purchasing rights?
We hope for quick clarity, so that there is still plenty of time for everyone to do business this year. Until then, the market will most likely be quiet and wait-and-see. Some trading took place this week and that took place at unchanged prices of around €149,00. Traders also report that the lagging milk production in 2021 may result in a smaller, or no, peak in prices this year.