The trade in phosphate rights has been picking up a bit in recent weeks. Prices are also rising steadily. The prices of 0% deliverable rights are rising the most. Lease rights are also being asked for more.
Apart from a small upturn in April, the market for phosphate rights has been under pressure for most of the year. A low point was reached in early August, followed by a slight upturn until early October. After that, prices went down again.
The last few weeks, the price of purchase rights in particular has been on the rise again. Many livestock farmers apparently want to buy some extra rights in the last month and a half of the year to either clear their accounts or to secure their position in view of the upcoming discounts.
In particular, the price of 0% deliverable rights has suddenly risen sharply and rose from around €44 to €45 per kilo to suddenly €50 and more. Two groups of buyers are responsible for this, it is said. On the one hand, it concerns farmers who participate in a buy-up scheme and are still short of some phosphate rights to make the administration complete. On the other hand, it concerns farmers who are doing well and do not need anything now, but will be able to achieve that extra space next year.
Almost parallel to this, the price of lease rights also suddenly rose sharply this week.