By FWi staff
THE milk quota market has remained very quiet over the past week as the stand-off between those looking for quota and those selling or leasing continues.
Demand is limited and many quota agents expect trading to remain limited until the Intervention Board releases Augusts production figures next week.
The value of quota entering the market is similar to last week although the lack of interest has caused prices to stabilise, noted a spokesman from ADAS Quota Direct.
Quota with a butterfat of 4% is trading at about 6.2ppl and 3.67% is at 5.5ppl.
Lessors waiting until October and November should remember that the October milk cheques from Milk Marque will be lower by 2ppl (seasonal adjustments), said Mark Dyson of Exeter-based Townsend quota agents.
“On top of this will be probable news of a price cut for October milk and this is likely to depress the leasing market then unless production is well over profile,” he added.
Buyers are also reluctant to pay for clean quota at current prices and little is being traded. Quota at 4% butterfat is selling at 29.8ppl while 3.86% is at 28.75ppl.
The volume of used quota entering the market has noticeably increased over the past week and with reasonable demand 4% butterfat is at 25.
5ppl and 3.69% at 23ppl.