MD_DA770                                                                        
DA                                                                              
MD DA770 Lactose - Central and West                                             

MADISON, WI.  November 10, 2016 (REPORT 45)                                     

LACTOSE - CENTRAL AND WEST                                                      

Prices for lactose are mostly unchanged, but slightly higher at the bottom of the 
price range. Lactose production is steady. Buyers are looking for available loads of 
lactose. However, some manufacturers have highly committed inventories and feel they 
need to turn down the entreaties. Quarter 1 contracting is just underway and buyers 
are eager to assure coverage for lactose needs. A few industry contacts are 
wondering if prices will hold at current levels through the first part of 2017. 
Australian purchasing agents are looking for more lactose for standardization of 
skim milk powder. The EU is producing a little less SMP and a little more cheese, 
making EU lactose more available. The October 2016 Dairy Market News average of the 
mostly price series for Central and West lactose was $0.3416, compared to $0.3208 
one month ago and $0.1850 one year ago. NASS's Dairy Products report shows U.S. 
lactose production during September 2016 totaled 91.5 million pounds, a 7.5% 
increase from one year ago. Year to date lactose production through September is 
816.0 million pounds, 3.0% more than a year ago. Month ending stocks, at 115.1 
million pounds, are 0.1% lower than one year ago, and 3.2% lower than August 2016. 

Including spot sales and up to 3 month contracts.                               
F.O.B. EDIBLE, NON PHARMACEUTICAL   .3000 - .4800    MOSTLY:   .3300 - .3750    


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

September Total           50.0           + 7

TOTAL, JAN - SEP         426.1           + 8
 1 New Zealand            73.3           + 41
 2 China                  71.0           + 10
 3 Mexico                 54.4           + 15
 4 Japan                  35.5           + 18
 5 Indonesia              32.8           + 59


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