MD_DA770 DA MD DA770 Lactose - Central and West MADISON, WI. October 06, 2016 (REPORT 40) LACTOSE - CENTRAL AND WEST Lactose prices moved slightly higher at the bottom of the mostly price series and held steady at the top of the series. But the range price series moved significantly higher as a number of Q4 contracts took effect. Industry contacts say interest is present from buyers. Contacts also note a little more activity from EU lactose manufacturers in export markets. Inventories are tight, especially for higher mesh lactose. Supplies are more available for lower mesh lactose. Production is steady. The September 2016 Dairy Market News average of the mostly price series for Central and West lactose was $0.3208, compared to $0.2948 one month ago and $0.1893 one year ago. NASS's Dairy Products report shows U.S. lactose production during August 2016 totaled 92.1 million pounds, a 6.5% increase from one year ago. Year to date lactose production through August is 724.4 million pounds, 2.5% more than a year ago. Month ending stocks, at 119.0 million pounds, are 5.0% lower than one year ago, but 1.7% higher than July 2016. Including spot sales and up to 3 month contracts. F.O.B. EDIBLE, NON PHARMACEUTICAL .2800 - .4700 MOSTLY: .2850 - .3650 U.S. Lactose Exports, H.S. Code 1702110000(FAS) 2016 Exports % Change From (Million Lb.) 1 Year Ago August Total 53.4 + 56 TOTAL, JAN - AUG 376.1 + 8 1 New Zealand 65.3 + 53 2 China 64.3 + 8 3 Mexico 48.9 + 19 4 Japan 31.1 + 20 5 Indonesia 29.3 + 58 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