MD_DA770 DA MD DA770 Lactose - Central and West MADISON, WI. January 12, 2017 (REPORT 2) LACTOSE - CENTRAL AND WEST Prices for lactose are unchanged in a mixed market. Some industry contacts report a slowdown for lower mesh lactose. They suggest lactose is readily available globally and the realities of unsold production is putting the brakes on market growth. Market participants are considering whether the market run-up has reached the top or whether the slowing skim milk powder standardization in Oceania or the coming Chinese New Year is creating a seasonal lull. The exception to the quiet market appears to be lactose that is 200 mesh, low spore or highly desired brands. These industry contacts report low inventories and high demand. They are not seeing a seasonal slowdown to markets and prices, for this lactose is commonly clearing in the upper half of the price range. NASS's Dairy Products report shows U.S. lactose production during November 2016 totaled 87.2 million pounds, a 5.7% increase from one year ago. Year to date lactose production through November is 995.6 million pounds, 4.0% more than a year ago. Month ending stocks, at 101.2 million pounds, are 0.6% lower than one year ago, and 2.9% lower than October 2016. Including spot sales and up to 3 month contracts. F.O.B. EDIBLE, NON PHARMACEUTICAL .2400 - .5800 MOSTLY: .3400 - .4000 U.S. Lactose Exports, H.S. Code 1702110000(FAS) 2016 Exports % Change From (Million Lb.) 1 Year Ago November Total 50.6 + 18 TOTAL, JAN - NOV 529.1 + 11 1 New Zealand 90.3 + 39 2 China 86.6 + 13 3 Mexico 67.2 + 10 4 Japan 43.9 + 19 5 Indonesia 39.3 + 48 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