USDA released their monthly Cold Storage report on Tuesday and butter inventories were the highlight of the January report. Total butter stocks were printed at 221 million pounds whereas many guesses were 10-15 million lower. Butter stocks increased 22 million pounds compared to December, however, the 5-year average lands at a 52 million pound build. Cheese inventories checked in at 1.445 million lbs which was more in line with expectations. The revised December estimate was just 3.9 million under January with the 5-year average at 14 million.
The CME spot dairy auction traded prior to the release of the Cold Storage report. Cheddar barrels gained 2 cents to $1.955/lb. Blocks were up a quarter cent to $1.99/lb. A single trade was seen in the barrel market and three exchanged hands in blocks. Butter fell 4 cents with six loads moving from seller to buyer. Whey and Grade A nonfat dry milk were unchanged on the day.
Class III milk prices were mainly higher throughout 2022. July and August 2022 led market strength adding 13 cents/cwt each. Class IV ended mostly even to 30-40 stronger in Q4 2022.
Grain prices jumped another 10-20 cents/bu in corn while soybeans added 30 cents with escalating tensions in Russia and Ukraine as the primary causes. Wheat ranged from 25-48 cents stronger across its complex.
