Bright Spot for Butter in Bearish Cold Stocks Report
On a whole, Friday’s USDA Cold Stocks Report brought bearish news to the dairy industry. However, butter stocks declined significantly which analysts say was necessary in the current market. Butter stocks fell 49.6 million lbs. in September to arrive at 269.2 million pounds. In addition, USDA reduced last month’s stocks number by 3.4 million pounds. However, according to analysts at INTL FCStone stocks are still 43.5% higher than they were last year and about 85.2 million lbs. above the 5-year average.
Cheese stocks were bearish. American cheese stocks were 6.5% higher than a year ago. INTL FCSTone says it’s normal to reduce American cheese stocks in September, not add them. Total cheese inventories were 1,2038.01 million pounds, up 0.3% over last month and a total of 7.4% higher than one year ago. Hopefully holiday demand will contract stocks going into November.