Prices are lower and the market tone is not as firm as some contacts had predicted. Nationally, milk supplies have not been as tight as anticipated. Eastern cheese output is mostly steady with past weeks, but milk movements to the Southeast aren't as heavy as expected and production is holding in the 5-6 day per week range.
Cheese demand is fair, best for process and mozzarella.
Packagers are gearing up for fall needs. Supplies of current cheese are sufficient to cover needs and aged cheddar stocks are fully adequate to ample. Retail sales are just fair as prices are relatively high and meeting some consumer resistance. Food service orders are slow as many people are dining out less frequently now that the economy seems to be slowing.