Analysis Phosphate rights
Has phosphate right trading been completed before 2021?
The trade in phosphate continued smoothly for a while, until the end of last week. Traders have spoken of a somewhat cooled trade in recent days.
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The more lively trade also stimulated prices until the end of last week. The DCA quotation for phosphate rights was still at €15 per right on Wednesday, December 149. Traders are now reporting that trading took place at the end of last week at prices between €154 and €156 per right. Partly due to the increased prices, buyer enthusiasm declined. It has meant that the market is a lot calmer this week. Phosphate rights prices have also fallen somewhat.
Has most of the trading been done?
Insiders are now wondering whether most of the business has been done, or whether another group of buyers will act before the end of the year. Quite a few transactions have been made in recent weeks and that gives the idea, in view of the low milk production, that most lots are planned for this year. There are certainly buyers on the market, but they are currently somewhat deterred by the increased prices in recent weeks.
The quotations for the DCA quotation for Phosphate Rights this week lead to a quotation of €152 for 100% usable rights. The range of lease rights was recently slightly wider, causing the price to drop by €1 to an average of €36 per right.