Wholesale cheese prices are lower following lower cheese prices at the CME cash auction. The market tone is weaker. Manufacturing milk sup- plies remain tight. Eastern cheese production is mostly steady, but milk movement to the Southeast has been less than expected providing more milk than anticipated to cheese plants. Thus, cheese plants were able to operate 5-6 days this week.
Demand is fair, being best for process and Mozzarella.
Packagers are gearing up for fall needs. Supplies of current cheese are sufficient to cover current needs while aged stocks are fully adequate to ample. Retail sales are just fair due in part to price resistance. Food ser- vice orders are slow due to people eating out less. In the Midwest, cheese movement is uneven and slow for fall.