Inside: Manure Market
Price of VVOs tends to go up
As the turn of the year approaches, the trade in replacement processing agreements (VVOs) is coming to life. How is the market in the last days of 2017?
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Choose the subscription that suits youThis year, traders expect it will probably remain exciting until New Year's Day to see how the trade in VVOs will develop. According to several respondents, the market is currently murky and therefore difficult to gauge. Traders report that the major parties are keeping aloof. The volumes currently traded are relatively small.
VVO providers have already done a lot of business in November and early December. This is to avoid a possible price drop in the latter days of 2017. Last year around this time, trade collapsed completely and that thought is still fresh in the minds of many providers.
DCA listing rises
As a result of the additional supply in November, the DCA quotation for VVOs fell by €0,12 to €1,06 per kilo of phosphate that month. This is the lowest point recently. In December the quotation recovered again. On Thursday, December 28, the quotation increased by €0,01 to €1,11. It can be seen as an indication that the offer is not on the street. This is also experienced in the market.
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This latest price trend is expected to continue.The question is whether major parties will still report, or whether they already have their fertilizer accounting in order. Despite this uncertainty, the price is expected to strengthen rather than weaken in the coming days.