MD_DA770 DA MD DA770 Lactose - Central and West MADISON, WI. May 21, 2015 (REPORT 20) LACTOSE - CENTRAL AND WEST Lactose prices are unchanged. The production/supply situation is mixed, often depending on whether a manufacturer is more heavily focused on the export or domestic market. U.S. lactose production is steady to higher. Milk volumes are nearing peak production in many areas and particularly the Midwest, where discounted spot milk is available. This is keeping cheese production at high levels which is also reflected in higher lactose production. Even so, some manufacturers with significant contractual export obligations and very full production schedules continue to experience production lagging preferred output timing. The higher export interest keeps inventories low to sold out at these plants. In contrast, some domestic buyers find supplies plentiful, with product available and spot sales occurring which is helping some manufacturers interested in reducing inventories. Including spot sales and up to 3 month contracts. F.O.B. EDIBLE, NON PHARMACEUTICAL .1700 - .3100 MOSTLY: .2000 - .2700 U.S. Lactose Exports, H.S. Code 1702110000(FAS) 2015 Exports % Change From (Million Lb.) 1 Year Ago March Total 51.9 + 8 TOTAL, JAN - MAR 124.1 - 1 1 China 21.1 + 42 2 New Zealand 18.6 - 21 3 Mexico 15.5 + 9 4 Singapore 10.7 + 114 5 Japan 8.2 - 20 1100CT eric.graf@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