By FWi staff
STRONG demand for leased milk quota saw dramatic volumes traded last week and prices soar.
Quota continues to come on to the market, albeit in smaller lot sizes, said a spokesman from ADAS Quota Direct. “With demand remaining strong and reduced availability many lessors are still holding out for higher prices,” he said.
Leased quota rose dramatically last week, with 4% butterfat at 9.25ppl and 3.85% at 8.5ppl.
The lack of production has had no effect on the price at all with producers unwilling to go beyond the leasing deadline without cover for their production, said Mark Dyson of Townsend Chartered Surveyors.
With the main focus on the lease market demand for clean quota remains low and an increase in supply has caused values to slip slightly. 4% butterfat is currently trading at about 37.75ppl while 3.80% is at 35ppl.
Supplies of used quota remain limited but more has entered the market over the last week. Sale prices removed slightly, with 4% butterfat at 31ppl and 3.71% at 27.5ppl.