MD_DA770                                                                        
DA                                                                              
MD DA770 Lactose - Central and West                                             

MADISON, WI.  September 22, 2016 (REPORT 38)                                    

LACTOSE - CENTRAL AND WEST                                                      

Lactose prices held steady this week. Overall demand has not lessened. 
Contracts for Q4 are mostly in place, and in some cases market participants 
are starting to work on 2017 agreements. Because lactose supplies are 
relatively tight, manufacturers are negotiating from a position of strength 
on the current contracts and buyers have not pushed back much. However, a few 
industry contacts note a little more availability for lower mesh lactose used 
for standardization and some buyers are beginning to balk at the trend of 
higher prices. Production is active and steady, but a few manufacturers say 
lactose production is being held back by slower cheese production at their 
facilities.

Including spot sales and up to 3 month contracts.                               
F.O.B. EDIBLE, NON PHARMACEUTICAL   .2300 - .4050    MOSTLY:   .2800 - .3650    

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