MD_DA770                                                                        
DA                                                                              
MD DA770 Lactose - Central and West                                             

MADISON, WI.  May 05, 2016 (REPORT 18)                                          

LACTOSE - CENTRAL AND WEST                                                      

Lactose prices are unchanged. Many manufacturers continue to report tight to 
very tight inventories. In some cases, production is contracted well into next 
quarter, and any available lactose is quickly taken up by regular customers 
seeking extra coverage, especially for higher mesh or specific brands of 
lactose. A few processors feel if they had available inventory, the lactose 
would be able to command prices at, or even above the top of the price range. In 
addition, some industry contacts suggest demand is strong for lactose used in 
standardization as end users seek coverage for their late year needs. However, a 
few other manufacturers are wary of what may be a temporary bump in lactose 
market strength. They see a push for finer mesh lactose right now, but are 
concerned that if long term needs are filled in the near term, market prices may 
be pushed lower after this demand is filled. There are some in the industry who 
also see a few manufacturers with inventories and needs to clear those stocks at 
lower prices from time to time. The April 2016 Dairy Market News average of the 
mostly price series for Central and West lactose was $0.2408, compared to $0.2280 
one month ago and $0.2370 one year ago. 

Including spot sales and up to 3 month contracts.                               
F.O.B. EDIBLE, NON PHARMACEUTICAL   .2000 - .3550    MOSTLY:   .2100 - .2950    

U.S. Lactose Exports, H.S. Code 1702110000(FAS)
                 2016 Exports      % Change From
                 (Million Lb.)       1 Year Ago

March Total              43.6           - 16

TOTAL, JAN - MAR        130.3           +  5
1 New Zealand            28.1           + 51
2 China                  20.1           -  5
3 Mexico                 17.0           + 10
4 Japan                  11.0           + 34
5 Indonesia              10.3           + 43


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