Cold Storage Report Shows Decline in Butter Stocks

November 23, 2015 05:42 PM
 
Cold Storage Report Shows Decline in Butter Stocks

Today’s cold storage report from USDA reported butter stocks down 5 percent from the previous month, but up slightly from one year ago.

Officials at FCStone say this report is bearish in relationship to their predictions.

“Butter inventories rose 21.01% from last year to 179.04 million lbs. versus our expectations of 2.14% growth or 151.12 million lbs. A month-to-month drawdown of 4.53% was also less severe than our expectations of a 19.40% decline,” they said.

Butter_Stocks

According to FCStone the fact that stocks grew as much as they did is evidence that many end-users finished their holiday purchasing earlier than normal this year. “All of this would lead to the logical conclusion that the price of butter is in jeopardy at, say, $2.20 let alone $2.90,” they said concluding that the report may not mean anything for the markets tomorrow.

Cheese stocks were also reported to be down slightly month over month but 15% higher than last year.

 

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Comments

 
Spell Check

mps
Paris, TN
11/23/2015 08:53 PM
 

  Poor headline!

 
 

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