By FWi staff
MILK production appears to have recovered, with the country standing at 2 million litres over quota for November, according to the latest figures published on Monday.
The UK is now 39.6 million litres under profile for the year, representing just over one days production, reveal the Intervention Board statistics.
The figures appear to confirm forecasts by many quota agents that the national quota target will be reached for the milk year, which ends on 31 March.
Other published statistics for the past week show more leases of temporary quota have increased, but the sale of permanent quota is down on last year.
Sales of permanent quota fell because producers were “cleaning up” quota for sale, said Peter Weston-Davies of quota agents Charles Holt.
“This indicates that there more is purchase to come on to the market,” he said.
The forward lease market remains unsettled, and any significant amount is yet to be traded. However, supply increased this week and interest is strong.
Bids for forward leasing started at 6.5ppl and trading commenced at 7ppl for quota at 4% butterfat.
The volume of clean quota entering the market also increased this week.
But a high proportion of quota remains above the current market as vendors hold out for higher prices, said a spokesman from ADAS Quota Direct.
Demand is steady and 4% quota is now at 39ppl and 3.65% is 35ppl.
Used milk quota values have continued to rise, but have now reached a plateau, said Mark Dyson of agents Townsend.
There is a large amount on the market but the expense means people are running away from bids for higher prices.
Used quota prices climbed to 31.5ppl for 4% butterfat with 3.8% at 30ppl.