NDM and Whey Manufacturer's Stocks Decline in July Amid Rising Cheese and Butter Production
Source: DairyNews.today
July 2024 saw notable shifts in dairy product inventories, with nonfat dry milk (NDM) and whey stocks experiencing significant declines while cheese and butter production continued to rise. NDM manufacturers' stocks dropped to 184 million pounds, a 10.4% decrease (-21.5 million pounds) year-over-year and a 2.0% decline (-3.7 million pounds) compared to June.
Whey stocks also saw a sharp reduction, totaling 63 million pounds in July, down 25.0% (-20.8 million pounds) year-over-year and 2.0% lower (-5.3 million pounds) month-over-month.
On the production side, July cheese production reached 1.19 billion pounds, marking a 1.9% increase (+21.8 million pounds) compared to the same month last year and a 2.7% rise (+31 million pounds) from June. Butter production followed a similar pattern with 162 million pounds produced, a 2.2% annual gain (+3.4 million pounds), though it dipped 3.8% (-6.3 million pounds) from the previous month.
The surge in cheese production corresponded with a rise in consumption, as U.S. cheese usage hit 1.15 billion pounds in July, up 0.9% year-over-year. Year-to-date cheese consumption reached 7.93 billion pounds, reflecting a modest 0.3% increase from the previous year. Meanwhile, U.S. butter consumption climbed 5.5% in July to 192 million pounds. Over the first seven months of 2024, butter consumption rose to 1.26 billion pounds, a 2.8% increase compared to the same period in 2023.
Amid these production and consumption trends, prices in the dairy market have been notably volatile. CME block cheese surged to $2.2700 per pound, a level not seen since June 2022, while barrels climbed to $2.2750 per pound. Spot whey prices also rose to $0.5875 per pound, reflecting growing market demand.
The decline in NDM and whey stocks signals tightening supplies, which may lead to continued price increases as demand for dairy products remains strong. With cheese and butter consumption on the rise, the outlook for dairy processors remains positive, though supply-side pressures may influence market dynamics in the coming months.
On the production side, July cheese production reached 1.19 billion pounds, marking a 1.9% increase (+21.8 million pounds) compared to the same month last year and a 2.7% rise (+31 million pounds) from June. Butter production followed a similar pattern with 162 million pounds produced, a 2.2% annual gain (+3.4 million pounds), though it dipped 3.8% (-6.3 million pounds) from the previous month.
The surge in cheese production corresponded with a rise in consumption, as U.S. cheese usage hit 1.15 billion pounds in July, up 0.9% year-over-year. Year-to-date cheese consumption reached 7.93 billion pounds, reflecting a modest 0.3% increase from the previous year. Meanwhile, U.S. butter consumption climbed 5.5% in July to 192 million pounds. Over the first seven months of 2024, butter consumption rose to 1.26 billion pounds, a 2.8% increase compared to the same period in 2023.
Amid these production and consumption trends, prices in the dairy market have been notably volatile. CME block cheese surged to $2.2700 per pound, a level not seen since June 2022, while barrels climbed to $2.2750 per pound. Spot whey prices also rose to $0.5875 per pound, reflecting growing market demand.
The decline in NDM and whey stocks signals tightening supplies, which may lead to continued price increases as demand for dairy products remains strong. With cheese and butter consumption on the rise, the outlook for dairy processors remains positive, though supply-side pressures may influence market dynamics in the coming months.
23.09.2024
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I have been thinking to make this post yes/ no. I decided for yes and like to ask everyone to not "shoot the messenger". The chart shows an analysis of IFCN Dairy Research Network from the 2024 supporter conference in Poland.
