MD_DA770                                                                        
DA                                                                              
MD DA770 Lactose - Central and West                                             

MADISON, WI.  January 19, 2017 (REPORT 3)                                       

LACTOSE - CENTRAL AND WEST                                                      

Prices for lactose once again held steady. The market tone for lactose is 
stable and calm. Industry contacts suggest the lactose market in Southeast 
Asia is quiet due to the oncoming Chinese New Year. Domestic demand is mixed. 
Industry contacts describe multiple tiers within the market. A few 
manufacturers report having some stocks available that they needed to clear. 
As a result, some spot sales and short-term contracts are in place for 
January and February at prices near the bottom of the range. Other 
manufacturers say they are seeing considerable inquiries from buyers. 
Production is steady and inventories are committed and tight, especially for 
desired brands and lactose that meets tight specifications. Some 
manufacturers are getting inquiries from buyers to establish Q2 or extended 
term contracts. At the GDT Event 180 on January 17, lactose prices across all 
contract periods averaged $0.3688 per pound, down 1.7%.


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