Analysis phosphate
Higher phosphate prices with calm trade
The prices for phosphate rights have reached an intermediate peak again this week. The price level remains relatively low for the time being. At least compared to last year. There is no clear reason for the rebound in prices, except perhaps a somewhat tight supply of allowances. Trading is quite calm.
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There are also plenty of uncertainties in the market, which means that buyers are a bit cautious.
For example, an Agricultural Agreement with a strict GVE standard could cause the phosphate market to collapse. Moreover, the milk price is now a lot lower than last year and it is still unclear whether the bottom has been reached and whether the price will rise again quickly afterwards.
Higher dairy prices in the third quarter
The dairy industry has been saying for almost six months that powder and cheese prices will increase again from the third quarter of this year, but it is not really clear what this is based on.
A lot of trading already done
Although trading is currently relatively quiet, many rights have changed hands in recent months, traders say. The price was relatively favorable and many dairy farmers still had quite a bit of money in their accounts due to the high milk prices in 2022.