Cheese Storage Continues to Build
For quite some time, cheese inventories have been a dark cloud that has hung over the head of the milk market. In the February cold storage report, natural cheese inventories we're 1.37 billion pounds, and while that was up 4% over 2018 for the first time in a while, it was lower than the previous month.
There were many questions as to why that may have been the case after the report had been released. But in the most recent export report that was put forward for the month of February, we finally have an absolute reason as to why cheese exports for the month of February totaled 32,515 tons. That's up 16% from the prior year on a daily average basis. This is the second-best month ever falling just short of the record achieved in March 2014.
When milk price was on its way to set new records itself. Sales to South Korea accounted for almost a quarter of the total volume 7,154 tons move in their direction. That's a 71% increase over the previous February. Export increases were also witnessed in other markets like Mexico, Japan, Australia and Southeast Asia and while cheese inventory still remain at record levels, ongoing growth in the export space maybe just what we need to continue to move this market in the right direction. So as you gather with family and friends over the weekend, you can help the cause by putting out a cheese platter Have a Happy Easter for commodity Risk Management Group. This is Mike north on know your markets.