Dairy Skim is a bite-size episode series where HighGround’s top analysts break down the latest dairy data release. Today, Cara Murphy discusses the June 2024 US Cold Storage Report. Customers can view the snapshot report here. Subscribe so that you never miss an episode!
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Transcript:
(0:12) Cara Murphy:
Hello, everyone, and welcome back to the Dairy Skim, HighGround Dairy’s bite-sized podcast intended to give the dairy industry some flavor into recent reports or events that can impact global commodity pricing. This is Cara Murphy coming at you live from downtown Chicago, Illinois, to bring you the quick rundown on the June 2024 US Cold Storage Report. Well, this report was, safe to say, a bit boring, so we’ll keep this episode short and sweet and to the point.
(0:41)
Both cheese and butter were neutral to expectations, and the April revisions were minimal. Starting with cheese, total stocks were down 11 million pounds, or just 0.8% from May for a total of 1,423 million pounds. Natural American cheese ending stock saw a drawdown of 11 million pounds as well, or minus 1.4% from May to the lowest June total since 2020. Meanwhile, other-than-American cheese stocks registered just 618 million pounds, flat compared to May, but marking the lowest June since 2019. Ultimately, this outcome was neutral to expectations, as the drawdown for total cheese was typical from May to June, but as inventories did not build earlier in the year, as they normally would, stocks continue to sink lower. It’s likely that tighter milk supplies across the US are the culprit rather than robust demand, and as milk output continues on its seasonal decline, we’re not going to make up the difference behind last year anytime soon. Alas, though, as total cheese stocks are 5.8% behind last year, this does provide some bullish undertones to the market.
(1:50)
On to butter. Another snoozer here. Butter inventories marked 374 million pounds in June, down 1.6% from May, but up 6.8% from the prior year. June butter supplies are the highest since 2021. The 6-million-pound month-to-month decrease was in line with expectations, and it doesn’t seem to really change the tone on this elevated butter market.
Well, that’s all folks. If you are looking for a more comprehensive take on this report, HighGround’s in-depth analysis will be available to our subscribers on our website tomorrow. And if you have any questions in the meantime, feel free to contact us at info@highgrounddairy.com. Have a great day, and don’t forget to check out our weekly show, Let’s Chat Dairy, published every Friday, where we cover all hot topics that happened in the dairy world that week. See you then! Cheers!
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