Butter stocks were 4,605t lower in June than in May—a drawdown twice the five-year average for the period. Butter inventories were down 5.9% YOY in June according to USDA’s Cold Storage report. This was bullish for the markets, implying stronger commercial disappearance and/or weaker production for the month. Meanwhile, reports from the field suggest that cream is available and churns are active later into the year than typical.

June cheese inventories increased by 1,189t from May, but were still down 0.4% YOY. Other-than-American-cheese stocks (including mozzarella) were down 1.4% YOY. “American cheese” stocks decreased between May and June by 2,522t month-on-month however, and were 0.4% higher YOY. CME spot market activity in June hinted at growing stockpiles as cheese volumes on the exchange stacked up and prices fell. This report more than confirms a growing sense of ample cheese for H2-25.