Production figures push quota leasing back
By FWi staff
TRADING in leased quota has eased back this week since September production figures were released.
“The latest production figures have had a big impact on the leasing price as buyers are content to adopt a wait and see approach,” said David Pettit of ADAS Quota Direct.
“Prices could drop to 3ppl this month. If October figures are on a similar level they could go even further.”
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Bruton Knowles has also reported a slip in prices, with fewer enquiries and deals being done. “But this trend may only be in the short term,” said BKs Jonathan Smith.
The sales market has also been quiet this week, despite prices having eased about 1ppl. “Purchased quota is looking a better long term option,” said Mr. Pettit.
“By next spring prices could be as much as 10ppl higher, so we will certainly start to see the market becoming busier – if producers can get the funds.”
Leased 4% butterfat quota is trading at 3.4ppl, with 3.7% butterfat supplies trading at 3.1ppl.
Clean quota sales are trading at 22.8ppl for 4% butterfat with for 3.78% butterfat supplies trading at 21.0ppl.