MD_DA770                                                                        
DA                                                                              
MD DA770 Lactose - Central and West                                             

MADISON, WI.  March 26, 2015 (REPORT 12)                                        

LACTOSE - CENTRAL AND WEST                                                      
                                                                                
The lactose market is mixed with both surplus and limited availability, 
depending on brands and sources. A few producers continue to clear lactose 
not committed to Q1 contract buyers. However, the supply picture for Q2 
ranges from available to tight. Some producers are still trying to 
finalize Q2 contracts while other producers have completed the process and 
have no additional volumes to offer. For those buyers trying to hit the 
bottom of the market for Q2 contracts, producers indicate those prices are 
in the past. Recently finalized Q2 contracts generally contain higher 
prices than those completed in early March. EU-based buyers showed 
additional interest for US lactose. Market participants indicate EU 
lactose producers have contracted heavily during Q1/Q2 to develop export 
trade routes for upcoming sales as lactose production ramps up later this 
year. This has some EU end users looking to the US manufacturers for Q2 
supplies. Domestic lactose production is steady to higher as milk 
production increases seasonally in the Central and Northwest. However, 
Western lactose production remains active but milk supplies are uneven, 
especially in California, where milk production lags that of a year ago. 
Inventories are variable, ranging from oversold to heavier than 
needed/expected. 

Including spot sales and up to 3 month contracts.                               
F.O.B. EDIBLE, NON PHARMACEUTICAL   .1800 - .3725    MOSTLY:   .2000 - .2750    


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