MD_DA770                                                                        
DA                                                                              
MD DA770 Lactose - Central and West                                             

MADISON, WI.  January 05, 2017 (REPORT 1)                                       

LACTOSE - CENTRAL AND WEST                                                      

As Q1 lactose contracts come into play, the top of the price range moved 
significantly higher. However the mostly price series is unchanged as a 
market tug-of-war is taking place. Some manufacturers report a firm market, 
strong demand and buyers eager to assure coverage of desired brands of 
lactose. Processors say buyer interest in 200 mesh lactose is especially 
keen. A few industry contacts, however, report receiving bids from some 
customers that are near the bottom of the price range. They suggest some 
manufacturers are offering excess inventory into the market at lower prices. 
As a result, some buyers are pitting suppliers against each other to leverage 
price concessions. The December 2016 Dairy Market News average of the mostly 
price series for Central and West lactose was $0.3633, compared to $0.3525 
one month ago and $0.1914 one year ago. At the GDT Event 179 on January 3, 
lactose prices across all contract periods averaged $0.3792 per pound, down 
2.9%.

Including spot sales and up to 3 month contracts.                               
F.O.B. EDIBLE, NON PHARMACEUTICAL   .2400 - .5800    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