A total of 152.9m pounds of butter was in storage in December, up a massive 46% from December 2014. Stocks increased by 15% during the month of December.
US-based dairy market analyst, Jerry Dryer, comments that the build was unexpected, given the typical increase is about 8m pounds. He goes on to state “market movements notwithstanding, total stocks, at 153 million lbs, do appear adequate.”
Total cheese stocks also increased year-on-year, by 13%, with 1.1b pounds of cheese in storage. This is virtually unchanged from November stocks, however.
American cheese stocks built during December, adding to record volumes. Mr Dryer comments “at 701 million lbs, inventories were well-above the five-year average of 625 million; but, also, in-line with my estimates.” The build-up of stock follows an unusual inventory increase during November, when stocks are typically drawn down.
Other cheese stocks were pulled down during December, with inventories falling about 3m pounds. Typically stocks build about 9m pounds during December, according to Mr Dryer.
Mr Dryer also comments “This report is bearish for butter and neutral-to-bearish for cheese as more-than-adequate stocks weigh on prices.”
