By FWi staff
QUOTA brokers had an uncomfortable few days after prices rallied following monthly milk production figures for August.
Despite output exceeding profile last month for the first time this milk year, the UK remains over 148 million litres under quota.
That did not stop quota markets from rallying at the first sign of the increase in output, with 4% supplies suggested to be leased at 4.1-4.3ppl.
Webb Paton was just one broker suggesting it had been caught in the middle of assaults between lessors and lessees over the price rise.
According to George Paton, some of the heat is coming out of the trade and parcels of 40-50,000 litres are being leased at about 4.25ppl.
“Theyre as high as theyve been all year, but people are prepared to pay it. Cover is being taken in smaller lots.
“Were not seeing the 250,000-litre deals – but there isnt the supply available today that was being offered last week,” he says.
Traders suggest that the market is likely to quieten down over the next few days, but permanent sale prices continue to fluctuate.
Vendors have seen 4% supplies offered for sale up to 21ppl to 23ppl in the past week through some brokers, but they are hoping it could be higher.
Leased 4% butterfat quota is trading at 4.2ppl, with 3.79% butterfat supplies trading at 4.0ppl.
Clean quota sales are trading at 23.0ppl for 4% butterfat with for 3.86% butterfat supplies trading at 22.0ppl.