close [X]

Total Cheese in Cold Storage Hits Record-High for April

Market Intel / May 24, 2018

U.S. dairy farmers are expected to produce 218.7 billion pounds of milk this year. With total fluid milk sales in the first quarter of 2018 down nearly 2 percent compared to prior-year levels, more and more milk is finding its way into manufactured dairy products such as cheese. Cheese in cold storage totaled 1.35 billion pounds at the end of April 2018, the second-highest total on record since the series began in 1917 and the highest April total ever.

American-style cheese stocks totaled 781.5 million pounds, down 55 million pounds or 2.8 percent from prior-year levels. March and April 2018 mark the first time since April 2015 that American-style cheese inventories have been below the previous year’s levels. Inventory of other cheeses, including Italian-style and Swiss, climbed to a record 565 million pounds, up 66 million pounds, or 13 percent, from 2017.

Cheese inventories generally climb during the spring flush and peak in July prior to the summer grilling season, so it is anticipated that cheese inventories will continue to increase over the next two-to-three months, possibly eclipsing the record of 1.37 billion pounds set in July 2017. 

Contact:
John Newton, Ph.D.
Chief Economist
(202) 406-3729
jnewton@fb.org
twitter.com/@New10_AgEcon
 

Share This Article

Credit: United Soybean Board / CC BY 2.0 

For the past year and a half, however, U.S. soybeans have been subject to retaliatory tariffs by China. Not only that, but China has suffered a devastating outbreak of African Swine Fever, which has decimated over 30% to as much as 50% of the world’s largest hog population (African Swine Fever Outbreak in China, African Swine Fever and China: Part II and African Swine Fever in China Keeps Getting Worse). Reducing demand, driving down prices and pushing up stockpiles, these events have roiled U.S. soybean markets. In 2019, soybean planted acres fell to the lowest level since 2011, 76.5 million acres.

Full Article

At 136,000 new jobs created, according to the establishment side of the September jobs report released October 4, this was another “just right” report. Expectations for the report ran somewhere in the 145,000 range, so 136,000 was slightly below expectations, but not enough to cause concern. From the other direction, the number by itself was not high enough to lead us to think the economy is heating up. The wage data helped to confirm this by showing a 3.5% increase over a year ago. Again, nice, but nothing concerning in either direction.

Full Article