MD_DA770                                                                        
DA                                                                              
MD DA770 Lactose - Central and West                                             

MADISON, WI.  November 05, 2015 (REPORT 44)                                     

LACTOSE - CENTRAL AND WEST                                                      

Lactose prices were mostly steady this week. The bottom end of the range 
dropped a penny as a few processors sought to clear excess inventory prior to 
year close. Other processors received low bids, but refused the tenders. Some 
manufacturers speculate there are continued price pressures from EU product 
flooding the world market. Demand has been relatively stable with good 
interest from Mexico and China. Lactose production is steady to lower, with a 
number of processors limiting dryer times. Some whey permeate is being 
returned to farms for feed value and not entering the lactose supply chain. 
Processor inventories of lactose continue to become more committed. The 
October 2015 Dairy Market News average of the mostly price series for Central 
and West lactose was $0.1850, compared to $0.1893 one month ago and $0.4218 
one year ago. NASS's Dairy Products report shows U.S. human and animal 
lactose production during September 2015 totaled 86.5 million pounds, a 5.3% 
decrease from one year ago. Cumulative year to date 2015 lactose production 
totals 799.6 million pounds, a 7.4% decrease from 2014. Month ending stocks, 
at 117.2 million pounds, are 5.3% higher than one year ago, but 7.5% lower 
than one month ago.  

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

September Total           46.7           + 14

TOTAL, JAN - SEPTEMBER   395.5           + 14
 1 China                  64.7           + 35
 2 New Zealand            52.0           - 2
 3 Mexico                 47.4           + 19
 4 Australia              36.5           + 88
 5 Singapore              31.4           + 71


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