MD_DA770                                                                        
DA                                                                              
MD DA770 Lactose - Central and West                                             

MADISON, WI.  March 05, 2015 (REPORT 9)                                         

LACTOSE - CENTRAL AND WEST                                                      

Lactose prices are fractional lower on the top of the mostly, but held 
steady on the range. The market is weak, but some market participants 
anticipate the bottom may be near. Demand for standardization is light at 
this time as Oceania producers of SMP are gearing down as their milk 
production season tapers off. Manufacturers selling into the international 
infant formula market report interest is steady and often brand specific. 
This area has also benefited from some shortfall of lactose availability 
in the EU. Some seasonal interest from Central and South American re-
emerged this week. Lactose production is steady as it follows cheese 
production trends. Inventories vary from comfortable to above what is 
needed for near term contract fulfillment. The February 2015 Dairy 
Market News average of the mostly price series for Central and West 
lactose was $0.2870, compared to $0.5950 one year ago.     

DAIRY PRODUCTS:  NASS's Dairy Products report shows US HUMAN and 
ANIMAL LACTOSE production during January 2015 totaled 89.5 million 
pounds, a 7.7% decrease from one year ago.  Month ending stocks, at 
127.3 million pounds, are 25.9% higher than one year ago.  

Including spot sales and up to 3 month contracts.                               
F.O.B. EDIBLE, NON PHARMACEUTICAL   .1800 - .4100    MOSTLY:   .2100 - .3200    

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