By FWi Staff

MILK quota sales prices have showed some signs of firming this week although buyers remain extremely cautious, said Mark Dyson of Townsend Quota Agents.

Recent increases in activity along with price rises in the lease market have resulted in an increase in demand, said a spokesman from ADAS.

With the steady supply coming onto the market, prices have inched up slightly this week with 4% butterfat quota at 35.5ppl and 3.65% at 32.0ppl. This compares with an average price of 45.0ppl this time last year.

Following a busy trade for leased quota over recent weeks demand eased off slightly this week. The volume of leased quota coming onto the market remains similar to recent weeks.

However, ADAS noted that with the recent increases in price lessors expectations remain high. Many are reluctant to let quota go at these prices.

As with clean sales, prices climbed slightly with 4% butterfat at 8.2ppl and 3.76% moving at 7.5ppl. In comparison leasing prices in 1997 were about 9.3ppl for the same period.

The volume of clean quota entering the market is continuing to increase. 4% butterfat remains unchanged at 28ppl.

UK production to the end of September stands at 17.3 m litres over the quota profile while the butterfat base is 4.02%. This is a reduction of 96 m litres in the same period of 1997.