Executive Summary

U.S. cold storage figures provided by the USDA were recently updated. Highlights from the updated report include:

• U.S. butter stocks increased seasonally but finished 23.2% below previous year levels.
• U.S. cheese stocks increased seasonally and finished above previous year levels by 0.00%.
• Overall, combined dairy product inventories continued to reveal tightness settling just below the three year average level.

Additional Report Details

Butter – Stocks Remain at a Three Year Low Seasonal Level, Down 23.2% YOY

According to the USDA, U.S. butter stocks increased seasonally but remained 23.2% below previous year levels. The YOY decline in butter stocks was the ninth experienced in a row and more significant the previous couple months.

The month-over-month increase in butter stocks of 16.8 million pounds, or 5.9%, was well below seasonal build of 36 million pounds, or 14.6%. Butter stocks typically reach seasonal low levels throughout the month of November, prior to rebounding seasonally throughout the month of December and the first half of the following calendar year. Butter stocks remained at a three year low seasonal level for the fourth consecutive month.

Cheese – Stocks Finish Above Previous Year Levels 2.2%

U.S. cheese stocks increased seasonally finishing 2.2% above last year’s levels. American cheese stocks finished 1.2% and non-American cheese stocks increased 3.3% above previous year levels. The month-over-month increase in total cheese stocks of 14.9 million pounds, or 1.0%, was below the ten-year average seasonal build of 25.6 million pounds, or 2.1%.

Combined Dairy Product Stocks – Stocks Remain Below Previous Year Levels

Combined stocks of butter, cheese, dry whey and nonfat dry milk finished 4.4% below previous year levels, finishing lower on a YOY basis for the fourth consecutive month.