According to the USDA's latest Cold Storage report released on Wednesday afternoon, total natural cheese stocks in refrigerated warehouses on Jan. 31 were down 1 percent from the previous month and down 7 percent from a year ago. 

Butter stocks were up 60 percent from Dec. 31 to Jan. 31 and up 44 percent from a year ago.

Dave Kurzawski, dairy analyst with FC Stone/Downes-O'Neill in Chicago, says the report was "very bearish" on butter and "slightly bearish" on cheese.