Stocks Ample for Milk Supply Outlook
US - USDA’s Cold Storage report indicates that American cheese and butter stocks are adequate given strong milk production and poor fluid milk demand, writes Mary Ledman, Sara Dorland, Sarina Sharp and Karen Endres on 24 April 2012.
24 April 2012
2 minute read
This combination
has resulted in greater dairy products
production, some of which has moved
into storage. American cheese stocks
totaled 621.9 million lbs. as of Mar. 31.
During the first quarter 2012 (Q1 2012),
American cheese stocks increased by 10.9 million lbs. compared to last year’s
uncharacteristic 19.5 million lb. stock
drawdown. Compared to previous years,
this year’s inventory build is modest and
only surpasses Q1 2009, another year with
a plentiful milk supply.
Butter stocks as of Mar. 31 reached
210.6 million lbs. Butter stocks increased
by 103.7 million lbs. during Q1 2012.
That build is second to 2006’s build of
136.7 million lbs. Despite the strong build,
current butter stocks are on par with 2008
and 2009 stock levels.
CME spot Cheddar cheese trading was
very active today as 14 loads of cheese
traded. The spot barrel market traded as low as $1.45/lb. before being bid higher.
A barrel transaction at $1.47/lb. closed
the market a penny higher. The block
market traded as low as to $1.52/lb. before
closing on a bid at $1.5225/lb., down 0.5¢.
The MAY and JUN Class III contracts
traded 50¢ to 60¢ lower in response to
below the market trades, but recovered
later in the day. The CME spot butter and
NDM trading was less eventful. The CME
spot butter market settled unchanged at
$1.4125/lb. with three at-the-money bids
on the board. Both CME Grade A and
Extra Grade NDM closed unchanged
after no trading activity at $1.1675/lb. and
$1.1275/lb., respectively.
TheCattleSite News Desk
