MD_DA770                                                                        
DA                                                                              
MD DA770 Lactose - Central and West                                             

MADISON, WI.  June 08, 2017 (REPORT 23)                                         

LACTOSE - CENTRAL AND WEST                                                      

Lactose prices are generally steady, except the bottom end of the price range 
slid lower this week. The margin between ground and unground lactose seems to 
have become more accentuated. After weeks of steadiness, more industry 
contacts are suggesting there may be some softness creeping into lactose 
markets. Inventories vary greatly. Some manufacturers of highly sought brands 
say stocks are tight to comfortable. While other processors are having a 
harder time moving their growing lactose stocks. Demand is a little quieter 
as buyers evaluate future needs. In some international markets, U.S. and a 
few European manufacturers are aggressively trying to secure greater market 
share and the ability to move larger volumes of lactose. Lactose production 
remains steady. The May 2017 Dairy Market News average of the mostly price 
series for Central and West lactose was $0.4100, compared to $0.4038 one 
month ago and $0.2551 one year ago. NASS's Dairy Products report shows U.S. 
lactose production during April 2017 totaled 96.5 million pounds, a 5.4 
percent increase from one year ago, but 0.8 percent less than last month. 
Year to date lactose production through April is 371.3 million pounds, 4.0 
percent more than a year ago. Month ending stocks, at 114.0 million pounds, 
are 9.8 percent lower than one year ago, and 6.9 percent less than March 
2017. At the GDT Event 189 on June 6, lactose prices across all contract 
periods averaged $0.4404 per pound, up 1.0%.

Including spot sales and up to 3 month contracts.                               
F.O.B. EDIBLE, NON PHARMACEUTICAL   .3200 - .5700    MOSTLY:   .3700 - .4500    

U.S. Lactose Exports, H.S. Code 1702110000(FAS)
                 2017 Exports      % Change From
                 (Million Lb.)       1 Year Ago

April Total              50.4           + 12

TOTAL, JAN - APR        190.1           + 8
 1 Mexico                31.4           + 36
 2 China                 30.8           + 8
 3 New Zealand           25.9           - 27
 4 Japan                 16.3           + 17
 5 Indonesia             14.0           - 7


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