By FWi staff
A FLURRY of market activity meant a nervous Christmas for many farmers. Leased quota prices rose by up to 3p in the final week of 1997 to end the year at 12-13ppl.
But with the trading period for leased quota now well and truly over, the market has turned its attention to supplies of saleable quota.
Demand is high and all types of saleable quota are short supply, according to Ian Potter Associates, Derby
Clean 4% quota is currently trading at about 49ppl, a rise of 2p on the week.
Used quota is making about 37ppl, an increase of 1p on the week.
The market is “quite busy for first thing,” report agents Carter Jonas. Prices are expected to rise as demand picks up.
Agents Berry Morris of Banbury have already sold 49,000 litres of clean 4% for 49.5ppl earlier today (Monday).
And agents Wright Manley have no quota to sell at all, relying instead on forward leasing deals for the 1998/99 season.
The availability of forward leasing differs from agent to agent. Agents Alder King report “some interest” from farmers eager to secure supplies early. Those interested should expect to pay around 8.5ppl for 4% butterfat.