High milk quota values tempt sellers
By FWi staff
MILK quota leasing values have steadied over the past week on the back of new supplies entering the market and a drop in demand.
Vendors who have been holding back for prices to rise are now taking advantage of the higher values and trading.
A number of quota agents believe leasing prices will fall further in the next couple of weeks
But a spokesman from WebbPaton quota agents said the weekly milk supply figures continue to provide little or no comfort to over quota producers, with volumes last week identical to the previous.
“The next monthly supply figures will be out on 7 December and we would advise those who need to lease in quota to do so before then.”
This was echoed by Mark Dyson of Exeter-based Townsend quota agents, who said the price for quota in December will be underpinned by underlying demand which remains strong.
Even if the production figures are down, he believes the country will break profile by well over 100 million litres. “Prices cannot therefore fall too far.”
Leased quota of 4% butterfat eased to about 8.3ppl with 3.84% at 7.8ppl.
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High vendor expectations have pushed clean quota values slightly higher. Supply has started to increase although demand has remained steady.
Clean sales firmed to 34.5ppl over the week for 4% butterfat with 3.83% at 33ppl.