By FWi Staff
THE volume of lease quota coming on to the market has slowed this week but prices remain unchanged as demand weakened.
Mark Dyson, of agents Townsend Quota Plan, reported a quieter week of trading after the active market which followed news of the Milk Marques successful selling round.
“There has been less quota available and lessees are reluctant to take any more,” added Mr Dyson.
Leasing costs for 4% butterfat are unchanged on last week at 7.8ppl with 3.72% selling at 7.3ppl.
Roger Lightfoot, of agents Hobbs Parker, said last weeks rush for quota was caused by the delivery of milk cheques, the publication of intervention figures and the positive reaction to Milk Marques August selling round.
Mr Lightfoot predicted that leasing prices will remain relatively stable with prices ranging between 7-8p until mid-November when the market is likely to become more volatile.
“My advice is that when producers see the price fall slightly they should start to lease small quantities in,” said Mr Lightfoot.
The cost of buying 4% butterfat quota remains unchanged from last week at 32.5ppl. Quota at 3.74% butterfat is selling at 32.5ppl.
The supply of used quota remains limited and prices range from 28ppl for 4% butterfat to 26ppl for 3.77% butterfat.