Quota values ease
MILK quota leasing values have eased this week, with lessees resisting paying over 11p/litre.
This follows the release of the September milk production figures showing butterfat adjusted deliveries of 1.079bn litres, or 5.59% below quota.
Just three lots traded
Bruton Knowles auction at Gloucester on Monday (Oct 16) saw just three lots traded. Prices ranged from 10.5p to 11p/litre. And the rest failed to change hands as "bidders resisted reserves which were above market value".
Lessors should see this as an indicator of the downward trend in the market, say the auctioneers.
Similarly, Milk Marques Alan Bell has noticed some lessors still hoping for 12p/litre. "One lot of 3.82% butterfat failed to shift for some time at this price," he said. "But as soon as the price was dropped to 11p/litre, it went straight away."
The recent arrival of milk cheques was unlikely to give any great fillip to the trade, suggested Mr Bell. And prices may even slip further, although 10p/litre was likely to be the base level, he added.
Symonds and Sampson, meanwhile, saw leasing values peak at 11.8p/litre for 4.07% butterfat quota at their auction early this week. But auctioneer Lester Williams says that 10p to 11p/litre will probably be the typical price range now.