Can Chinese milk output declines rebalance dairy stocks? In this edition of Chart Chatter, we look at the latest China milk production data and dairy stock inventories. Milk output posted the second consecutive monthly decline with February production down 5.3% year-over-year and liquid milk consumption also slipping. WMP remains oversupplied and inventories have climbed to 154,000t, pushing stocks-to use 50% above the five-year average. Meanwhile, SMP is the tight spot in the market, with lower imports and stronger domestic use driving stocks‑to‑use to the lowest February level on record.
