By FWi staff

THE end of last week saw brisk trade in the lease market.

But with UK butterfat deliveries showing cumulatively that the UK is 43 million litres below profile, demand has eased slightly and many are waiting to see how the market develops, said a spokesman from ADAS Quota Direct.

Lease prices have remained strong as quota trades quickly, said Caroline Carr of Ian Potter Associates. “Theres not a great deal on the market and we need to see more supply.”

Demand is still there, despite the low milk production figures, and theres still a large number of producers wanting large quantities, said Ms Carr. “Demand is still keeping up with supply.”

However, milk cheques will be the crunch to supply, said Ms Carr: “Producers are not prepared to gamble and are leasing as an insurance.

“But if supply has not come out by 21 December when milk cheques have been paid, then it wont come out at all,” she said.

With strong demand, milk quota leasing prices inched up slightly, with 4% butterfat nudging up 8.5ppl and 3.8% at 8.1ppl.

The market is concentrating mainly on leasing now, and therefore sales of clean quota will probably be quiet until the new year, said Mark Dyson of Townsend chartered Surveyors.

Demand and trade remain steady although prices have firmed slightly as vendors hold out for higher prices. A large proportion of the quota on offer continues to be priced above the current market, noted ADAS Quota Direct.

Prices of clean milk quota sales have remained steady this week with 4% butterfat at 37.75ppl and 3.75% at 35ppl.

Short supply of used quota has helped prices rise again this week with 4% butterfat climbing to 31.5ppl.