MD_DA770                                                                        
DA                                                                              
MD DA770 Lactose - Central and West                                             

MADISON, WI.  July 09, 2015 (REPORT 27)                                         

LACTOSE - CENTRAL AND WEST                                                      

Lactose prices softened again this week. Buyers are looking for bargains and 
in some cases, making bids below the price range. Manufacturers are unwilling 
to capitulate fully with every buyer request. Industry participants report an 
increase in activity as manufacturers work to clean out extra inventories. 
Some manufacturers are beginning to look at Q4 or 2016 contracts as a way to 
find homes for product. Production is steady, but could be hampered a little 
by higher humidity throughout the summer.

The June 2015 Dairy Market News average of the mostly price series for 
Central and West lactose was $0.2170, compared to $0.5699 one year ago. 

NASS's Dairy Products report shows U.S. HUMAN and ANIMAL LACTOSE production 
during May 2015 totaled 88.9 million pounds, a 10.2% decrease from one year 
ago.  Cumulative 2015 lactose production totals 441.6 million pounds, a 7.3% 
decrease from 2014.  Month ending stocks, at 129.8 million pounds, are 27.8% 
higher than one year ago.  

U.S. Lactose Exports, H.S. Code 1702110000(FAS)
                 2015 Exports      % Change From
                 (Million Lb.)       1 Year Ago

May Total              36.6           - 11

TOTAL, JAN - MAY      215.1           + 8
 1 China               38.2           + 45
 2 New Zealand         28.7           - 16
 3 Mexico              27.0           + 11
 4 Singapore           20.2           + 155
 5 Japan               14.5           - 24

Including spot sales and up to 3 month contracts.                               
F.O.B. EDIBLE, NON PHARMACEUTICAL   .1650 - .2725    MOSTLY:   .1800 - .2200


1100CT mike.bandli@ams.usda.gov  608.557.7010
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