Butter Stocks Back To ‘Normal’ Levels
Last week, USDA released their January Cold Storage Report. While cheese stocks were up 7% from 2017, the real story is in butter. Butter stocks jumped 33% from last month, but analysts say they are just getting back to “normal” levels.
“Last year they were below normal, so we’re going from below normal to normal,” explains Shawn Hackett from Hackett Financial Advisors. “We really don’t think there’s a lot more pressure on butter. We think butter demand is starting to kick in again based upon the lower prices. We actually see the market being fairly constructive through the rest of the year.”
Full fat dairy products are becoming more popular among consumers again, Bloomberg reports. Butter falls into that category.
Watch the video from AgDay below.