By FWi staff
INCREASED demand from dairy producers has pushed up the price of leased milk quota.
Limited supplies of leased milk quota are trading at almost 7ppl, 0.5ppl up on the week. Agents Ian Potter Associates say leased quota remains scarce, especially for lower butterfats.
The company traded more than 400,000 litres of leased quota last Friday, including 50,000 litres of 4.07% butterfat which leased for 6.8ppl.
Prices are continuing to hold because few lessees are willing to enter the market, say traders Bruton Knowles.
The price of bought quota has eased, however. Supplies of 4% butterfat are currently making about 33.5ppl, about 1.5ppl down on the week. Little trade is being done because vendors are refusing to accept the market rate.