MD_DA770                                                                        
DA                                                                              
MD DA770 Lactose - Central and West                                             

MADISON, WI.  June 04, 2015 (REPORT 22)                                         

LACTOSE - CENTRAL AND WEST                                                      

Lactose prices declined on the mostly series, reflecting overall market 
weakness.  There was very little spot interest this week and most contract 
buyers are uninterested in taking higher volumes.  Manufacturers report 
few new inquiries.  The confectionary market is particularly weak and 
generally occupies the lower end of the mostly price series.  Export 
markets for baby formula manufacturing bring higher prices closer to the 
top of the mostly price series, but that market also shows some price 
softness this week as manufacturers are working to reduce holdings.  
Export interest for baby formula manufacturing overseas is leading to 
lactose beginning to move toward ports.  Contracts between some users and 
producers for Q3 or Q3/Q4 continue to be negotiated, while some have been 
finalized.  The May 2015 Dairy Market News average of the mostly price 
series for Central and West lactose was $0.2354, compared to $0.5959 one 
year ago.

DAIRY PRODUCTS:  NASS's Dairy Products report shows U.S. HUMAN and 
ANIMAL LACTOSE production during April 2015 totaled 89.3 million 
pounds, a 4.4% decrease from one year ago.  Cumulative 2015 lactose 
production totals 353.7 million pounds, a 6.3% decrease from 2014.  
Month ending stocks, at 136.5 million pounds, are 42.2% higher than 
one year ago.  

Including spot sales and up to 3 month contracts.                               
F.O.B. EDIBLE, NON PHARMACEUTICAL   .1700 - .3100    MOSTLY:   .1900 - .2600    

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