Analysis phosphate
Phosphate trade is booming again after calm weeks
The phosphate trade has exploded again this week after weeks of calm trading. Not everyone appears to have covered the need. Still, prices aren't just going up.
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Various reasons are given for the sudden resurgence of crowds. Last week it was often said that most dairy farmers would now be supplied. That now appears to be different. Many buyers apparently waited until the last minute and calculated their chances. A lawsuit involving a large dairy farmer in Southeast Brabant would also have an impact because he would suddenly have to buy a lot of rights.
Be that as it may; there is a lot of buying going on. Prices for purchasing rights have risen to €171 to €175 per kilo. The prices for lease with skimming are around €36 per kilo, while the prices for skimming-free lease are between €16 and €17 per kilo.
It is remarkable that prices for the latter category are actually falling. According to traders, the cause is a fairly significant oversupply. "For every batch of skimming-free leases that I process, I am offered 3 new ones," notes a trader.