Milk quota steadies despite super-levy threat

By FWi Staff

CLEAN milk quota prices appear to have steadied despite the threat of a super-levy when the milk year ends at the end of this month.

But demand for quota has increased slightly as farmers fine-tune output to minimise the impact of any fine for over-production.

Clean quota at 4% butterfat have eased by a penny over the week to 54ppl. And according to one agent, prices could ease further over the next two weeks as supplies increase.

Used quota prices have managed to hold their own in the wake of Milk Marques decision to lower its milk price from April.

Many agents had expected used quota values to drop but they remain at 36ppl. Some agents say that speulators are buying on the basis that the market will harden once the new milk year begins in April.

Forward leased quota for the 1998/99 season is also unchanged on the week at 7ppl. It appears that demand has eased slightly, however, as farmers focus on the run-up to 31 March.

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