MD_DA770                                                                        
DA                                                                              
MD DA770 Lactose - Central and West                                             

MADISON, WI.  February 04, 2016 (REPORT 5)                                      

LACTOSE - CENTRAL AND WEST                                                      

Lactose prices are mixed. After a few short term agreements cleared market channels 
last week, the range price series narrowed. And although the overall market tone 
remains firm and flat, several spot sales bumped the top end of the mostly price 
series slightly higher. A number of contacts stated lactose prices may be hindered 
from moving significantly higher until whey prices also move higher due to a 
psychological barrier between the valuation of carbohydrates versus protein. In the 
meantime, manufacturers report a good, steady demand from buyers. Lactose 
inventories remain relatively tight and a few processors state they do not have 
additional loads to offer to spot markets until later in the spring. Lactose 
production is steady. The January 2016 Dairy Market News average of the mostly price 
series for Central and West lactose was $0.2061, compared to $0.1914 one month ago 
and $0.3210 one year ago. NASS's Dairy Products report shows U.S. lactose production 
during December 2015 totaled 87.4 million pounds, a 5.2% decrease from one year ago. 
Cumulative year to date 2015 lactose production totals 1.054 billion pounds, a 7.0% 
decrease from 2014. Month ending stocks, at 103.6 million pounds, are 22.1% lower 
than one year ago, and unchanged from one month ago. 

Including spot sales and up to 3 month contracts.                               
F.O.B. EDIBLE, NON PHARMACEUTICAL   .1800 - .3100    MOSTLY:   .1800 - .2450    


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