MD_DA770                                                                        
DA                                                                              
MD DA770 Lactose - Central and West                                             

MADISON, WI.  December 08, 2016 (REPORT 49)                                     

LACTOSE - CENTRAL AND WEST                                                      

Lactose prices moved slightly higher at the top of the mostly price series, but 
lower at the bottom of the price range. Some manufactures say Q1 contracting is 
nearing completion with higher prices and little push back from buyers. 
Manufacturers of highly desired brands of lactose report tight inventories and 
strong demand. In contrast to this, other industry contacts suggest the market is 
showing some signs of softening. A few manufacturers indicate they have inventories 
they want to clean out before the end of the year. Some of these spot sales are at 
discounted prices. A few sales of lactose that did not meet buyer packaging or 
product specifications also cleared below published prices. Some manufacturers are 
carrying the discounted sales into January 2017. The November 2016 Dairy Market News 
average of the mostly price series for Central and West lactose was $0.3525, 
compared to $0.3416 one month ago and $0.1851 one year ago. NASS's Dairy Products 
report shows U.S. lactose production during October 2016 totaled 89.3 million 
pounds, a 7.5% increase from one year ago. Year to date lactose production through 
October is 908.5 million pounds, 3.8% more than a year ago. Month ending stocks, at 
107.2 million pounds, are 2.0% higher than one year ago, but 6.8% lower than 
September 2016. At the GDT Event 177 on December 6, lactose prices across all 
contract periods averaged $0.3960 per pound, +10.6%.


Including spot sales and up to 3 month contracts.                               
F.O.B. EDIBLE, NON PHARMACEUTICAL   .2400 - .4800    MOSTLY:   .3300 - .3800    


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

October Total             52.4           + 33

TOTAL, JAN - OCT         478.5           + 10
 1 New Zealand            83.0           + 41
 2 China                  78.9           + 16
 3 Mexico                 60.1           + 12
 4 Japan                  40.0           + 22
 5 Indonesia              35.9           + 49


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