Bullish November Cold Storage Report
On Friday USDA released the November Cold Storage Report. Results were bullish, according to officials at INTL FCStone.
Butter stocks were reported at 160.9 million pounds in November. The November stocks were lower than most analysts anticipated, falling 29.5% from the previous month. However, stocks are still 21% higher than November 2015.
“With the spot butter market crashing from the mid $2.20s in August and bottoming out near $1.80 in October buyers may have backed off from the bearish market,” FCStone reports. “Coming into November the spot butter market turned on a dime and breached the $2.20 level by month. This shock to the market may have caused a greater drawdown in stocks than estimated.”
Combined cheese stocks also declined in November albeit a shallower decline than butter stocks. The 3.5% decline from the previous month was still higher than analysts anticipated. USDA reported 1.197 billion pounds of cheese in storage, up 2.8% from last year.