US Cheese Stocks Down
US - According to USDA’s “Cold Storage” report released this afternoon, American cheese stocks decreased in February vs. the prior month and vs. February 2011, writes Alan Levitt, 22 March.
23 March 2012
2 minute read
This suggests strong demand and greater exports for the month. American cheese stocks totaled 606.3 million lbs. as of February 29, 2012. That is 0.9 per cent or 5.7 million pounds less than January 2012 and 2.3 per cent or 14.0 million pounds lower than last year (see chart). This is the second year that stocks uncharacteristically declined during Q1.
In February 2011, stocks declined by 17.6 million pounds vs. the prior month and posted a 9.7 million pound decline the following month before increasing in April 2011.
Butter stocks continue to outpace last year’s abnormally low level. During February 2012, butter stocks increased 5.0 per cent or 35.0 million pounds to 205.3 million pounds. That is 48.1 per cent or 66.6 million pounds greater than February 2011; however, only modestly more than February 2009 and February 2010.
Class III futures tumbled double-digits after the CME spot Cheddar block and barrel prices closed unchanged at $1.6350/lb. and $1.6250/lb., respectively without any trades. CME spot butter settled unchanged at $1.5225/lb. with a single bid on the board. Butter futures closed mixed.
USDA’s Dairy Market News weekly surveyed dry product “mostly” prices were lower this week except for lactose. The Central dry whey mostly range is 59.5¢ to 64.0¢, down 1.0¢ on the low side of the range. The West dry whey mostly range is 48.0¢ to 58.5¢, down 2.0¢ on the low side and 2.5¢ lower on the high side. The Central/East NDM mostly range is $1.21/lb. to $1.35/lb., down 2.0¢ on the low end and 4.0¢ lower on the high end. The West NDM mostly range is $1.20/lb. to $1.34/lb., down 2.0¢ on the low side.
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