Leased quota supply grows

By FWi staff

LEASED quota prices eased back this week as increased quota continues to enter the market while demand remains steady.

Although falling slightly, quota is still at a higher value than it was this time last year, with 4% butterfat at 6.9ppl and 3.80% 6.3ppl.

The volume of clean quota entering the market has also increased this week. But with buyers reluctant to pay the current price, little is being traded and prices have eased, noted ADAS Quota Direct.

The purchase of clean quota has eased slightly, with 4% butterfat at 33.8ppl and 3.71% at 31.5ppl.

Buyers see this as a good time to trade. But, unsurprisingly, sellers try not to sell quota into the cheapest market if they can help it, noted a spokesman from Swindon-based milk quota agents Lovedays.

“We expect to see continued heavy demand to buy, with very little quota available,” he added.

But with milk cheques expected to be down this month, a number of producers are saying that quota prices must fall before theyll purchase.