Milk quota vendors sitting on the fence
By FWi staff
THE supply of leased quota entering the market has continued to slow this week as many lessors wait hoping for further price rises.
Quota agents reported a steady week of trading with prices remaining much the same as last week. “Vendors are still sitting on the fence, and supplies arent meeting demand,” said a spokesman from Hobbs and Parker National Quota Agents.
However, demand has now increased with lessees reluctantly opting to take quota cover at the prices offered. Agricultural Consultant Duncan Clarke agreed that prices had increased as demand started to rise.
“The price has reached as high as 8.2ppl for 4% butterfat over the past week,” said Mr Clarke. “Although the market has gone quiet again over the past few days.”
The price of leased quota is currently about 7.9ppl for 4% butterfat and 3.76% at 7.3ppl.
ADAS reported increased activity in the purchase market this week. Increased demand and a similar supply of clean quota coming onto the market has strengthened the price. The price is about 35.5ppl for 4% butterfat, and 3.86% is moving at about 27ppl.
The volume of used quota entering the market has noticeably increased this week.
4% butterfat is selling at 28.25ppl while 3.87% at 27ppl.