MD_DA770                                                                        
DA                                                                              
MD DA770 Lactose - Central and West                                             

MADISON, WI.  May 12, 2016 (REPORT 19)                                          

LACTOSE - CENTRAL AND WEST                                                      

Lactose prices held steady this week. Demand for lactose is mixed. Industry 
contacts report requests for higher mesh lactose are strong, but buyers are 
having a harder time finding available 200 mesh lactose. The demand for lower 
mesh sizes is lighter and in some cases lactose is competing with permeate to 
find a home in the feed industry. A few market participants are hopeful that the 
present good demand for permeate will also create a little lift for lactose 
prices later in the summer. Lactose inventories range from very tight at higher 
mesh sizes to readily available at lower mesh sizes. Buyers and manufactures are 
starting to look at Q3 agreements. Production is steady and some manufacturers 
report their production is maxed out. NASS's Dairy Products report shows U.S. 
lactose production during March 2016 totaled 95.6 million pounds, a 2.9% increase 
from one year ago. Year to date lactose production through March is 264.1 million 
pounds, 0.2% more than a year ago. Month ending stocks, at 187.4 million pounds, are 
38.7% higher than one year ago, and 49.7% higher than February 2016. 

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

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