MD_DA770 DA MD DA770 Lactose - Central and West MADISON, WI. July 07, 2016 (REPORT 27) LACTOSE - CENTRAL AND WEST Lactose prices are steady to higher on the mostly price series. Some manufacturers are pushing for higher prices on spot sales and Q3 contracts. Industry contacts report mixed inventories. Stocks of high mesh, ground lactose is tight and has provided a price lift over the last few weeks. However, unground and low-mesh lactose have greater availability. A few end users report spot purchases that have pulled the bottom end of the price range sharply lower. Many manufacturers have Q3 contracts completed and are getting inquiries for advance pricing for Q4. Demand is firm and production is steady. The June 2016 Dairy Market News average of the mostly price series for Central and West lactose was $0.2616, compared to $0.2551 one month ago and $0.2170 one year ago. NASS's Dairy Products report shows U.S. lactose production during May 2016 totaled 89.9 million pounds, a 1.9% increase from one year ago. Year to date lactose production through May is 439.1 million pounds, 0.2% less than a year ago. Month ending stocks, at 125.8 million pounds, are 0.5% lower than one year ago, but 1.2% higher than April 2016. Including spot sales and up to 3 month contracts. F.O.B. EDIBLE, NON PHARMACEUTICAL .1850 - .3775 MOSTLY: .2300 - .3150 U.S. Lactose Exports, H.S. Code 1702110000(FAS) 2016 Exports % Change From (Million Lb.) 1 Year Ago May Total 49.3 + 35 TOTAL, JAN - MAY 224.6 + 4 1 China 41.7 + 9 2 New Zealand 40.7 + 42 3 Mexico 29.3 + 8 4 Indonesia 18.8 + 67 5 Japan 18.7 + 29 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