Butter Inventory Lower Than Expected
The USDA cold storage report came out today and results indicated a faster draw-down in butter stocks than anticipated. Butter stocks ended November at 158.8 million pounds, well below what analysts at INTL FCStone expected which was 172.4 million pounds. They attribute this faster-than-expected sell off to a better seasonal draw down than expected. Butter stocks are down 27% from October, which is normal for this time of year, but also 1.5% lower than November 2016.
The report on natural cheese was about where it should be, analysts say. American cheese stocks were up 2.8% over last year and down 0.98% from October. In the "other cheese" category, stocks were up 11.95% due to ramped up production of mozzarella.