MD_DA770 DA MD DA770 Lactose - Central and West MADISON, WI. December 10, 2015 (REPORT 49) LACTOSE - CENTRAL AND WEST Lactose prices are steady to higher for the week. A few manufacturers have been pushing the price very slightly upward on spot sales into export markets. However, pressures from inexpensive permeate have anchored the bottom of the price range. Processors report steady production and committed inventories. A few manufacturers say they are oversold through the first few months of 2016. Industry contacts report Q1 contracting is ongoing with prices at or a little above current levels. The November 2015 Dairy Market News average of the mostly price series for Central and West lactose was $0.1851, compared to $0.1850 one month ago and $0.4050 one year ago. NASS's Dairy Products report shows U.S. lactose production during October 2015 totaled 84.1 million pounds, a 6.2% decrease from one year ago. Cumulative year to date 2015 lactose production totals 882.4 million pounds, a 7.4% decrease from 2014. Month ending stocks, at 123.9 million pounds, are 3.2% lower than one year ago, but 6.0% higher than one month ago. U.S. Lactose Exports, H.S. Code 1702110000(FAS) 2015 Exports % Change From (Million Lb.) 1 Year Ago October Total 40.3 - 8 TOTAL, JAN - OCT 435.9 + 11 1 China 68.3 + 22 2 New Zealand 59.2 - 10 3 Mexico 53.5 + 21 4 Australia 38.5 + 81 5 Singapore 35.6 + 76 Including spot sales and up to 3 month contracts. F.O.B. EDIBLE, NON PHARMACEUTICAL .1400 - .2650 MOSTLY: .1600 - .2200 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