Milk shortfall keeps quota market quiet
By FWi staff
DAIRY producers are 64 million litres under profile, according to the June figures released by the Intervention Board last week.
With doubts growing as to whether producers will reach national quota this season, the lease and purchase markets have gone quiet and prices have stabilised.
“Until we are over quota it is a gamble for farmers to buy more,” said Mark Perry of ADAS Quota Direct.
“But this week we have seen lessors start to accept offers as more quota is coming on to the market.”
In the purchase market, supply of clean quota is increasing and buyers are holding off in anticipation of prices easing.
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“The recent panic in the clean market over recent weeks has also led to a quietening of the market,” said Mr Perry.
“But despite talk of an increase in milk price, any rise will only be modest and farmers shouldnt over react. In fact, some companies are talking of reducing the price.”
Leased 4% butterfat quota is trading at 3.8ppl with 3.58% butterfat at 3.4ppl.
Clean quota sales are trading at 17ppl for 4% butterfat, with 3.68% supplies at 16ppl.