Analysis phosphate rights
Prices of phosphate rights have been relatively low so far
The market for phosphate rights has been a tame market so far this year, especially when it comes to pricing. Where in other years €140 per kilo was easily tapped for purchasing rights (also in the first half of the year), the price does not want to exceed €134 this year.
Read this article?
Become a subscriber and get instant access
Choose the subscription that suits you
This situation may change in the second half of the year, but the signs are not great. There is a lot of uncertainty hanging over the market due to all kinds of possible government interventions. The milk price is also a lot lower than last year. Then high milk prices helped push the price of phosphate rights above €180 per kilo in the autumn. And while the VAT refund at the end of the quarter could otherwise give a boost to trade, this lure does not seem to be working now.
At the beginning of this year, prices were not very high, but according to traders, quite a few transactions were made. That is no longer the case either. Prices are currently under pressure again and the market is said to be stiff. With the holiday season approaching, things don't seem to be getting much better.
It is possible that the leasing market will provide a little more life after the summer. Until now there was little to do there. That is also slightly less strange for the first half of the year. For the time being, few livestock farmers are in trouble with their milk production volume.