MD_DA770                                                                        
DA                                                                              
MD DA770 Lactose - Central and West                                             

MADISON, WI.  May 14, 2015 (REPORT 19)                                          

LACTOSE - CENTRAL AND WEST                                                      

Lactose prices are unchanged to lower. A few end users reached 
out to their lactose suppliers to realign production costs 
represented within current lactose price agreements, basically 
requesting a net decrease in lactose prices. Lactose producers 
are reluctant to meet this type of request. Also, a few animal 
feed end users have bid on loads, but manufacturers indicate 
they prefer to hold lactose rather than accept lower prices at 
this time. Increasing interest from end users related to milk 
powder standardizing in Oceania is also present. Those buyers 
are starting well ahead of the new milk powder production season 
to secure inputs and allow for transportation time. U.S. lactose 
production is steady to higher at some plants as milk volumes 
available to cheese plants, especially in the Central region, 
are moving higher. With discounted prices available on some spot 
milk loads, cheese plant operators are bringing in extra milk 
volumes to maximize cheese production. This increase in cheese 
production is mirrored in the lactose production trend at these 
plants. Similar trends are happening at some western cheese 
plants, as well, but a few western cheese plant operators are 
diverting the whey stream out of protein/lactose and into dry 
whey production. Lactose inventories vary. Some plant operators 
report they are oversold for Q2, and a few producers have 
started shipping Q3 to match increased interest. Other producers 
report their inventories, while higher than required/desired, 
are declining as additional interest appears from international 
and domestic buyers. 

Including spot sales and up to 3 month contracts.                               
F.O.B. EDIBLE, NON PHARMACEUTICAL   .1700 - .3100    MOSTLY:   .2000 - .2700    

1100CT Janet.Linder@ams.usda.gov (608)557-7003
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: www.ams.usda.gov/dairymarketnews
Dairy Market News database portal: www.marketnews.usda.gov/portal/da