MD_DA770                                                                        
DA                                                                              
MD DA770 Lactose - Central and West                                             

MADISON, WI.  December 22, 2016 (REPORT 51)                                     

LACTOSE - CENTRAL AND WEST                                                      

Lactose prices are generally steady, but moved higher at the top end of the 
mostly price series on a few higher-priced spot sales. Some manufacturers 
continue to report solid demand and relatively tight inventories. Contracting 
for Q1 lactose needs is getting wrapped up without much price resistance from 
buyers. However, some industry contacts are starting to see market signals that 
suggest a softening market. These contacts are trying to figure out what 
direction the market may take. Some buyers are pushing back on manufacturers' 
offers and feel sufficient lactose stocks are available. A few industry contacts 
indicate significant volumes of lactose have recently been offered at discounted 
prices. Market participants feel this warrants attention, to see whether this is 
a short term occurrence brought on by processors clearing out inventories or the 
winter holiday doldrums, or if this is a longer term trend that may indicate the 
lactose market is slowing.

Including spot sales and up to 3 month contracts.                               
F.O.B. EDIBLE, NON PHARMACEUTICAL   .2400 - .4800    MOSTLY:   .3400 - .4000    


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