By FWi staff
THE new milk quota season has started slowly and is expected to stay slow for the near future, according to Mark Perry of ADAS Quota Direct.
Forward leasing values dropped at the end of last month because farmers didnt want to commit themselves, said Mr Perry.
“And prices may fall back further with the uncertainty over milk prices,” he added.
“With lessees holding off at these prices, the market has yet to find its own level”
Leased quota of 4% butterfat is currently trading at 4.1ppl, with 3.87% at 3.7ppl.
Clean quota sales have also had a slow start to the new quota year, with 4% butterfat trading at 20.5ppl and 3.89% at 18.75ppl.
Mr Perry believes the market will stay quiet for the time being as milk price falls cut in over the summer.
Values may not rise until later this year because of the new extended leasing period, he said.
“But the big unknown is how many people have left the industry.”