April’s Cold Storage report will be remembered as “the record breaker.” Never before have butter, American-style andTotal Cheese manufacturers’ stocks been as high as they were at the end of last month, according to Eric Meyer at dairy industry hedge execution and consulting firm HighGround Dairy.

Still, while the records are impressive, the industry should expect moderate growth in stocks, he notes. As demand gradually increases over time, manufacturers want to keep more product in storage to maintain a balanced level against sales.

“However, it is the pace of growth that continues to impress us given the sluggish start to U.S. milk production this year as well as the recent price spike during March and April,” Meyer says.“This report is a clear indication that demand has not met expectations during the first four months of the year. We view this as bearish for both butter and cheese prices in the near term.”