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Plenty of movement in the price of phosphate rights recently
Although the traded volume of phosphate rights is very limited, the price formation for phosphate rights has been anything but stable recently. Where a few weeks ago sellers leaned back because of rising prices, the roles now seem reversed.
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At the end of last week, 100% usable phosphate rights were traded for prices between €153 and €155, brokers report. When asking prices rose a little further, buyers dropped out completely. Prices then fell steadily at the beginning of this week. Although the trade is still very thin, business is being done left and right for prices between €147 and €149.
Roles reversed
Because prices are dropping again, traders report that the purchasing parties are now responding with a wait-and-see attitude. Sellers have actually become more insecure after the recent decline, and a few are now eager to do business.
At the same time, there is a lot of uncertainty among all parties about the future of the sector and the consequences of any government policy. According to insiders, it remains a matter of guessing what buyers or sellers should do. During expansion and reduction, the company regularly opts for doing business 'in small portions of allowances', it is reported. In this way, the parties hope to choose a middle path to limit the risks and influence of any new measures.
The DCA quotation for phosphate rights amounts to an average of €148. That is €0,50 lower than last Wednesday.