By FWi staff
THE milk quota market is remaining stable as the end of the quota year rapidly approaches.
There is a shortage of clean quota on the market, although this has not affected prices.
Clean quota of 4% butterfat is at 33.5ppl and 3.8% is at 31ppl.
The supply of used quota has increased putting pressure on values. Prices have eased slightly with 4% butterfat at 32ppl and 3.88% at 31ppl.
The premium for clean quota is only 1-2ppl and is a relatively cheap insurance compared with super-levy at 26ppl, said a spokesman from ADAS Quota Direct.
Forward leasing values have eased as trade picks up with quota trading between 6.3ppl and 6.5ppl.
But most lessors are not bringing their quota to the market early this year and, unless prices improve, then many will be happy to leave their leasing until September-November, said Mark Dyson of Exeter-based quota agents Townsend.
Production is up with unadjusted deliveries at 257 million litres in the week to March 13. This compares with 247 million litres in the same period last year.
But its unlikely national output will hit quota, said Mark Bray of ADAS. The latest weekly figure marks a drop of 200,000 litres on the previous seven days. “It would appear to have peaked.”
And such sentiments, says Mr Bray, have been reflected in the quota market. “Its died a death.”