MD_DA770                                                                        
DA                                                                              
MD DA770 Lactose - Central and West                                             

MADISON, WI.  February 26, 2015 (REPORT 8)                                      

LACTOSE - CENTRAL AND WEST                                                      
                                                                                
Prices for lactose shifted lower across the range and on the top of the 
mostly series. The market is generally weak. Some brokers and end users 
indicate loads are readily available outside of contracts from several 
sources. Many contacts describe the market as a buyer's market, with more 
loads available than domestic interest requires at this time. Export 
demand is tepid for March monthly loads, but some end users are signaling 
interest in long term fixed price contracting. For those offers, 
manufacturers' interests are, unsurprisingly, tepid. Contracting for Q2 is 
underway. However, some sellers report the dock slowdown has also impacted 
those conversations. Buyers are leery about being able to buy on a just in 
time basis when shipments are currently delayed by several weeks. Others 
are going ahead with Q2 fixed price contracts, with end users planning to 
work inventories and transportation methods around the oceangoing shipping 
delays. Although a tentative agreement is in place for west coast 
dockworkers, the only cure for the backlog of ships and containers is 
time. Lactose production is steady at many locations and inventories are 
increasing incrementally.

Including spot sales and up to 3 month contracts.                               
F.O.B. EDIBLE, NON PHARMACEUTICAL   .1800 - .4100    MOSTLY:   .2100 - .3275    

1100CT Janet.Linder@ams.usda.gov 608.278.4157
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