A dairy economist says while the recent cold storage report was bearish for dairy markets, he was surprised by butter stocks numbers.
Nate Donnay with StoneX says butter inventories were only down half as much as he expected for October compared to last year which might indicate retail demand for the holidays could have been pulled forward earlier in the year.
“This very week October number is either suggesting that early demand that we saw during July, August, and September was the frontloading of holiday demand or that the holiday-related demand was not frontloaded at all,” he says.
