Butter Stocks Reach Historic Highs
One dairy product that won’t be short in supply for this Christmas gatherings is butter. On Monday afternoon the USDA released it’s November edition of the cold storage report resulting in higher than expected stocks of butter and American-type cheese.
Butter stocks ended up 181 million pounds, the largest that we have had in 26 years and creates a market with burdensome supply and likely resistance to price appreciation. Year over year inventories of butter increased 17% in November 2019 and declined 23% from the October released figures which was 7% less then the three year average. Despite reaching two year lows in cold storage holidays for American type cheese, the market is disappointed to see that the drawdown in inventory didn’t exceed typical levels.
American cheese stocks were reported at 740 million pounds, down 4 million pounds from October 2019. The 5 year average decline from October to November is 5.4 million pounds. Total beef in freezers from November totaled 480,382,000 lb., down 7% year over year but up 3% from last month.
From all of us at Commodity Risk Management group, we would like to wish you and your families a very Merry Christmas!