MD_DA770                                                                        
DA                                                                              
MD DA770 Lactose - Central and West                                             

MADISON, WI.  September 10, 2015 (REPORT 36)                                    

LACTOSE - CENTRAL AND WEST                                                      

A few spot sales of lactose with specific mesh and other characteristics 
desired by end users raised the top of the range. Lactose prices otherwise 
held steady. Some manufacturers are slowing their dryers to produce only what 
is sold. Inventories are mixed, with a few processors reporting tight or 
committed stocks. Industry inventories as a whole are long. Market 
participants note domestic demand is steady and some new inquiries for export 
are developing. Substantial price competition exists in select markets. A few 
buyers are seeking fixed pricing for 2016, but so far, manufacturers have 
been hesitant to engage. The August 2015 Dairy Market News average of the 
mostly price series for Central and West lactose was $0.1912, compared to 
$0.1995 one month ago and $0.5349 one year ago. NASS's Dairy Products report 
shows U.S. human and animal lactose production during July 2015 totaled 90.5 
million pounds, an 11.0% decrease from one year ago.  Cumulative 2015 lactose 
production totals 624.0 million pounds, an 8.4% decrease from 2014.  Month 
ending stocks, at 126.2 million pounds, are 4.3% higher than one year ago.  

Including spot sales and up to 3 month contracts.                               
F.O.B. EDIBLE, NON PHARMACEUTICAL   .1500 - .2700    MOSTLY:   .1700 - .2100    

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

July Total             51.5           + 52

TOTAL, JAN - JULY     316.1           + 16

 1 China               54.6           + 43
 2 New Zealand         39.2           - 8
 3 Mexico              37.4           + 14
 4 Australia           29.7           + 185
 5 Singapore           26.8           + 91


1100CT Mike.Bandli@ams.usda.gov (608) 557-7010
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: http://www.ams.usda.gov/market-news/dairy
Dairy Market News database portal: http://www.marketnews.usda.gov/mnp/da-home