By FWi staff
LEASED milk quota prices fell for a second week running as the volume coming on to the market continues to increase.
Demand eased further over the week. “However, the next few days might be busier as producers receive their milk cheques,” said Mark Webb of national quota agents Lovedays.
Milk cheques are due out in the middle of next week and are also expected to increase demand. Leased quota prices slipped back this week with 4% butterfat at 8.6ppl and 3.87% at 8ppl.
With weekly (unadjusted) delivery figures showing production falling, the downward pressure on the lease price is likely to continue, noted a spokesman from ADAS Quota Direct.
Clean milk quota sales fell back towards the end of last week due to the poor production figures, said Mark Dyson of Townsend Chartered Surveyors.
In October the UK was 13.2 million litres under profile, and 3.5m litres cumulatively for the year.
“While this is only slightly under the norm for the time of year, the fact that it is under does affect the market. There are, however, over 4 months of selling left this year and, provided production figures do not drop more, the prospects for higher prices in January/February still remain good,” he said.
Clean quota prices eased slightly over the with 4% butterfat at 38ppl and 3.76% at 34ppl.
Used quota remains in short supply although prices appear to have levelled with 4% butterfat at 30ppl