Butter storage levels declined to about 66,000 tonnes from 75,000 t last month, an 11% drop. Compared to last year, storage levels have been lower still. Butter storage totalled 106,000 tonnes in September last year, 40,000 tonnes more than current levels.
Lower butter storage levels this year has underpinned the high prices of butter within the US. But butter prices have shown some signs of easing in recent weeks, with spot prices dropping 29% on the CME last week.
The drop in retail buying that is anticipated for December may result in further easing of prices as wholesalers near slow down their purchasing. Cream supplies are becoming more abundant suggesting that this wholesale demand for butter may have already eased.
Cheese storage has declined 3% from last month, down to 460,000 tonnes. Compared to last year, storage levels are 5% lower.
