Milk Quota Market Remains Static

With limited interest in the leasing market continuing, prices have started to ease slightly this week.

“We have seen the odd bit of trading but with production figures as they are there is reluctance to buy. If July figures are similar it will put downward pressure on the market and prices will have to drop,” says Mark Perry from ADAS Quota Direct.

“There will come a point when producers wont release milk cheques. If this happens, lessees will have to take action.”

The volume of sales quota trading is fairly limited as vendors expectations remain high, with prices above the current market.

“Talk of any price increase will only be modest,” says Mr. Perry. “Unless vendors are forced to sell most will hold on for a price rise. Those that do sell for a lower price could trigger a slow come back in the trading market.”

Leased 4% butterfat quota is trading at 3.4ppl with 3.56% at 3.0ppl.

Clean quota sales are trading at 17.0ppl for 4% butterfat, with 3.80% supplies at 16.25ppl.