Inside Milk
Phosphate rights slightly cheaper week on week
The trade in phosphate rights is still not really getting going. Market participants describe the trade as quite tame. Week by week the prices are a small step back.
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Clarity surrounding the skimming-free leasing of phosphate rights has not been able to provide any real impetus to trade. The expectation on the left and right was that clarity on this matter could get the market moving more. However, that did not happen. Intermediaries indicate that many companies, despite the high milk prices, lack the financial space to invest in phosphate rights. There is even less to report about the leasing market, there is hardly any trading going on.
Purchase rights are now 6 euros cheaper
Since the short peak in the price at the beginning of September (week 36), phosphate rights have gradually fallen in price. This week the DCA Phosphate Rights quotation is also €0,50 lower at €145,00. Recently it has become increasingly clear that an autumn increase may not occur because relatively little milking has taken place in the Netherlands. As a result, fewer livestock farmers will probably need extra rights this year. Nevertheless, brokers expect to do some more trading in terms of volume in the coming weeks.