MD_DA770 DA MD DA770 Lactose - Central and West MADISON, WI. October 08, 2015 (REPORT 40) LACTOSE - CENTRAL AND WEST Lactose prices held mostly steady this week with the top end of the price range slipping slightly. Market participants are transitioning into Q4 agreements. Demand is mixed. Some manufacturers report lactose is moving slowly, mostly to regular customers. Other manufacturers see increases in demand and interest coming from end users and brokers. A few processors are turning down low price bids, opting to hold inventories or slow production instead of selling at a potential loss. Production is steady to lower. The September 2015 Dairy Market News average of the mostly price series for Central and West lactose was $0.1893, compared to $0.1912 one month ago and $0.4693 one year ago. NASS's Dairy Products report shows U.S. human and animal lactose production during August 2015 totaled 88.7 million pounds, a 2.9% decrease from one year ago. Cumulative year to date 2015 lactose production totals 712.7 million pounds, a 7.7% decrease from 2014. Month ending stocks, at 129.4 million pounds, are 17.5% higher than one year ago. U.S. Lactose Exports, H.S. Code 1702110000(FAS) 2015 Exports % Change From (Million Lb.) 1 Year Ago August Total 32.8 - 7 TOTAL, JAN - AUGUST 348.8 + 14 1 China 59.6 + 47 2 New Zealand 42.5 - 11 3 Mexico 41.0 + 13 4 Australia 32.4 + 134 5 Singapore 28.6 + 76 Including spot sales and up to 3 month contracts. F.O.B. EDIBLE, NON PHARMACEUTICAL .1400 - .2600 MOSTLY: .1600 - .2100 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