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 February 2023 US Cold Storage Report. You can view the snapshot report here. Subscribe so that you never miss an episode!
Cara: Good Afternoon and Happy Spring! This is Cara Murphy, HighGround’s Dairy Market Intelligence Manager bringing you today’s Dairy Skim on the just-released February Cold Storage data.
Looking at cheese, Natural-American cheese declined 1.7% below the prior year, the sixth consecutive month of year-over-year declines. From January to February inventories fell by 6.5 million lbs. While this was slightly below our expectations as well as the 5-year average it is not out of the realm for where the market is currently.
Total cheese saw the first January to February inventory decline since 2019 and was well below the 5-year average month-over-month change for this time. But, with February coming in just 0.2 million lbs below January figures the outcome was overall neutral.
For butter, February marked the third consecutive month of year-over-year and month-over-month gains. However, with a 30.7 million lb increase from the previous month, that was just slightly below the 38.4 million lbs 5-year average and below the 44 million lb. increase seen from January to February in 2022. At first glance, this would seem somewhat supportive but we are calling this mostly neutral as well.
Well that’s all I have for today, be on the lookout for our comprehensive analysis that will be coming out shortly hereafter and have a great weekend! Cheers!
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