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Analysis phosphate rights
Phosphate trade picks up slightly at lower prices
20 September 2023 - Klaas van der Horst
The trade in phosphate rights is picking up slightly again after a long period with hardly any trade. This happens as prices continue to fall. Also, more lease agreements are concluded than purchase contracts.
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According to parties in the phosphate trade, the latter can be explained by the narrower purse that many dairy farmers now have. The milk price is disappointing and costs are relatively high. There is also the risk that European payments to the sector appear to be significantly delayed this year
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Dairy farmers might want to purchase additional phosphate rights, but because they are short on cash and have other uncertainties, many opt for leasing rights in practice.