MD_DA770                                                                        
DA                                                                              
MD DA770 Lactose - Central and West                                             

MADISON, WI.  August 17, 2017 (REPORT 33)                                       

LACTOSE - CENTRAL AND WEST                                                      
                                                                                
Prices for lactose declined on the bottom of the range, while holding steady on 
the mostly price series. A majority of lactose processors and brokers report that 
lactose is experiencing an onslaught of downward pressure. Manufacturers report 
that end users who do not need brand specificity or upgraded requirements are 
able to patiently wait out the current downtrend in prices, as unground lactose 
inventories continue to build. Contracting for Q3 into Q4 has been an uphill 
battle for some manufacturers. Export demand is mixed. Some contacts noted that 
there were block loads headed into Asia this week, while others report exports 
into Southeast Asia are generally quiet, and Asian buyers are only purchasing 
based on current production requirements. EU production of lactose is adding to 
the anxiety amongst U.S. manufacturers. Overall, interchangeable lactose is 
experiencing an unstable market. One possible bright spot is that contacts have 
suggested current prices have begun to grow Mexican interest. Producers who 
manufacture brand-specific and/or infant formula grade lactose are not feeling 
the same pressure. Inventories of higher mesh product are fairly balanced, while 
demand is steady.    

Including spot sales and up to 3 month contracts.                               
F.O.B. EDIBLE, NON PHARMACEUTICAL   .2200 - .4700    MOSTLY:   .3100 - .4000    

1100CT israel.weber@ams.usda.gov 608.422.8601
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