By FWi Staff
THE recent fall seen in leased quota prices caused a slight increase in demand last week, but with quota coming on to the market, prices have continued to ease. Butterfat 4% is trading at 7.4 ppl while 3.82% trades at 7ppl.
Mark Dyson of Townsend Quota Plan, Exeter says that demand is good for leased milk quota.
“Prices have been affected by the August milk cheque issue, although they are not expected to come down as they have in past years. The large quantity of unused quota for sale will not affect the leasing price, particularly because there is still a shortage of quota for lease,” said Mr Dyson.
Little change was seen in the purchase market last week while the volume of clean quota coming onto the market continues to increase. With little demand ADAS reported prices slipping. Quota of 4% butterfat is currently 35ppl and 3.63% at 31ppl.
The Milk Marque selling round, which closed on Thursday, 3 September, is rumoured to be up 0.5-0.7ppl and this could have an effect on quota prices, said Mr Dyson.
Other factors likely to affect the price this week are the milk production figures for August along with the increased amount of unused quota coming to the market from dispersed sales.