October 6, 2023: Butter Stocks Push Class IV Higher

Declining butter stocks are helping to contribute to a recent increase in the Class IV milk futures prices on the CME. Butter inventories were down 40.3 million pounds, or about 12 percent, from July to 289.1 mil. lbs at the end of August. That is the largest August decline in inventories since 2015. Butter stocks are still up four percent from a year ago, but they are well below the five-year average of 329.2 million pounds. In the past three months, butter stocks have declined by 78.8 million pounds, the largest decrease over summer since 1993.

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