MD_DA770 DA MD DA770 Lactose - Central and West MADISON, WI. January 15, 2015 (REPORT 2) LACTOSE - CENTRAL AND WEST Additional lactose agreements for first quarter and monthly contracts came in at mostly weaker pricing. The undertone is softening as demand is lackluster within the States. Competition for Asian marketshare is fierce with U.S. manufacturers competing for it. Asian buyers realize the market and are electing to work inventories to low levels before taking new positions in hopes of lower pricing in the future. U.S. suppliers are noting increasing port problems on the West coast leading to delays in shipments. Production rates of lactose are mostly steady. Inventory levels are maintaining to increasing for the most part. According to FAS, January-November U.S. lactose exports total 433.1 million pounds, 3% below the same time span in 2013. Including spot sales and up to 3 month contracts. F.O.B. EDIBLE, NON PHARMACEUTICAL .1900 - .4750 MOSTLY: .2700 - .3700 U.S. Lactose Exports, H.S. Code 1702110000(FAS) 2014 Exports % Change From (Million Lb.) 1 Year Ago November Total 39.3 + 18 TOTAL, JAN - NOV 433.1 - 3 1 New Zealand 73.9 + 20 2 China 65.9 - 16 3 Mexico 48.1 - 21 4 Japan 42.2 + 21 5 Indonesia 27.8 + 11 1100CT Ryan.Studnicka@ams.usda.gov 608-278-4155 USDA/AMS/Dairy Market News, Madison, Wisconsin Dairy Market News website: www.ams.usda.gov/dairymarketnews Dairy Market News database portal: http://www.marketnews.usda.gov/mnp/da-home