Cheese and Butter Inventories Drop More Than Expected

 Despite the drop in CME cheese markets, Class III futures were more mixed and muted. The September contract slipped to $21.79 per hundredweight, shedding 19 cents. But Q4 futures settled at $21.33 per hundredweight, up a dime.

USDA’s Cold Storage report leaned bullish for both cheese and butter, with inventories dropping off at a faster-than-average pace in July. Total cheese stocks reached 1.407 billion pounds, down 5.8% (-85.9 million pounds) on the year and -0.7% (-10.2 million pounds) month-over-month. That was ahead of the five-year-average monthly decline of 6.4 million pounds. Butter stocks totaled 353.8 million pounds, up 7.4% (+24.5 million pounds) versus 2023, but down 6.1% (-23.0 million pounds) on the month, a much steeper monthly decline than the five-year average of 8.4 million pounds.

Ever.Ag - The risk of loss trading commodity futures and options can be substantial.  Investors should carefully consider the inherent risks in light of their financial condition. The information contained herein has been obtained from sources to be reliable, however, no independent verification has been made.  The information contained herein is strictly the opinion of its author and not necessarily of Ever.Ag and is intended to be a solicitation. Past performance is not indicative of future results.