MD_DA770 DA MD DA770 Lactose - Central and West MADISON, WI. March 09, 2017 (REPORT 10) LACTOSE - CENTRAL AND WEST Lactose prices held steady this week. Processers report inventories are tight to well-balanced. Domestic end users are providing good demand and buyers are making regular inquiries, especially for lactose that meets tight specifications. Manufacturers are starting to work on Q2 contracting and are suggesting a slow rise in pricing into the next quarter. A few industry contacts, however, think the price has reached the top and is set for a correction. Many contacts see the lactose market tone as stable at this point in time. The February 2017 Dairy Market News average of the mostly price series for Central and West lactose was $0.3750, compared to $0.3718 one month ago and $0.2166 one year ago. NASS's Dairy Products report shows U.S. lactose production during January 2017 totaled 92.2 million pounds, a 9.0% increase from one year ago. Month ending stocks, at 109.0 million pounds, are 5.6% lower than one year ago, but 8.5% more than December 2016. At the GDT Event 183 on March 7, lactose prices across all contract periods averaged $0.4191 per pound, down 4.3%. Including spot sales and up to 3 month contracts. F.O.B. EDIBLE, NON PHARMACEUTICAL .2400 - .5800 MOSTLY: .3400 - .4100 U.S. Lactose Exports, H.S. Code 1702110000(FAS) 2016 Exports % Change From (Million Lb.) 1 Year Ago TOTAL, JANUARY 47.1 + 11 1 Mexico 12.3 + 183 2 China 6.5 + 10 3 New Zealand 5.5 - 51 4 Japan 5.1 + 28 5 Indonesia 3.3 + 3 1100CT Mike.Bandli@ams.usda.gov 608.422.8592 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