Town's U18s fell to a disappointing 2-0 defeat at the hands of their East Anglian rivals Norwich City at Colney on Saturday morning.
The Blues made the better start and Norwich keeper Steven Arnold was forced into making a double save early on.
Efforts from Luke Webster and Jordan Rhodes almost gave Town the lead but they fell behind on 34 minutes. Jaime Eames received a ball from Kris Renton and he whipped in an inviting cross that Kurtis Byrne fired past Town keeper Andrew Plummer.
Plummer made a one-on-one save from Daley before a poor kick from the keeper almost resulted in a goal when Ross Kelly's long-range effort landed just wide of the Town goal.
Rhodes, still not quite back to his best after his injury, came close again with a curling shot, but with seven minutes remaining the Canaries doubled their advantage and made sure of the three points. Byrne threaded Kris Renton through on goal who coolly finished past Plummer.
Town's outstanding performer was central defender Tommy Smith, while star midfielder Edward Upson was left on the bench with a sore back.
The Town U18s fall a place in the table after Crystal Palace shocked league leaders Chelsea by beating them 4-3. Chelsea had previously got a 100% record. Town are now fifth in their academy group, 12 points behind leaders Chelsea.
Town's U16s lost 3-1 to the Canaries, Irish striker Paul Murphy netting for the Blues.
Norwich U18s: Arnold , Matthews, O'Toole, McLean, Quaye, Kerry, Eames, Lathorpe, Renton (Muddel 88), Byrne and Daley (Smart 72). Unused: Miller.
Ipswich U18s: Plummer, Webster, Robinson, Fenn, Smith, Short, Williams, Reason, Boto (Ainsley 67), Rhodes (Tooms 72) and Nimmo. Unused: Upson.