MD_DA770                                                                        
DA                                                                              
MD DA770 Lactose - Central and West                                             

MADISON, WI.  April 21, 2016 (REPORT 16)                                        

LACTOSE - CENTRAL AND WEST                                                      

Lactose prices moved higher at the top end of the mostly price series. Industry 
contacts say inventories are committed and relatively tight. In addition, demand 
is good from infant formula markets. Because of this, some manufacturers say 
they can be a little picky on which lactose sales they accept, especially for 
higher mesh lactose and lactose moving into upper end markets. In some cases, 
processors are pushing for spot prices beyond the mostly price series. The 
market tone for lactose is mixed. Although tight inventories, good demand in 
some markets, and recent gDT events suggest firming, some industry contacts 
suggest there are downward pressures as well. Lower end markets seem to be 
running into price pressures from substitutes, such as whey permeate, and there 
is a psychological barrier some buyers have when comparing the prices of lactose 
and dry whey.

Including spot sales and up to 3 month contracts.                               
F.O.B. EDIBLE, NON PHARMACEUTICAL   .1800 - .3550    MOSTLY:   .2100 - .2750    


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