By FWi staff

THE new-season milk quota trade has finally picked up, with increased demand seen on both the lease and purchase markets.

Milk cheques and the poor weather caused a flurry in the lease market last week, firming prices, noted a spokesman from ADAS Quota Direct.

“But with increased supply and the reluctance of lessees to pay these prices, the leasing price has stabilised,” he added.

Leased quota inched up to 6.60ppl over the week.

The purchase market became more active last week, with a much larger supply of clean quota entering the market. Despite this additional supply, an increase in interest firmed prices, with 4% butterfat at 33.5ppl and 3.61% at 29ppl.

Traders say that it is very difficult to predict future price movements this year, with high production in March and April fuelling demand.

But the recent announcement of further drops in milk values over the coming month is likely to have a depressing effect on the market.