The cheese market is unsettled to weak. Recent price declines on the Chicago Mercantile Exchange cash cheese market are impacting orders as buyers delay purchases while prices decline. Overall, demand is lackluster and often somewhat disappointing for fall. Buyers are also working down inventories where possible.
Most processors have operating capacity available if business improves.
At least some of the demand slowdown is attributed to the problems in the East with the hope that demand will rebound as consumers resume normal activities such as dining out and traveling. The hotel, restaurant, and institutional segment seems to be the most affected while retail is irregular but close to normal. Process demand remains moderate, aided by several fast food promotions. More plants are catching up with bulk cheese orders, in part due to cancellations of some orders and seasonally improving cheese yields. Spot interest is typically for specialty items, and then often for quick delivery.