MD_DA770                                                                        
DA                                                                              
MD DA770 Lactose - Central and West                                             

MADISON, WI.  September 07, 2017 (REPORT 36)                                    

LACTOSE - CENTRAL AND WEST                                                      

Although lactose prices are unchanged on the range, the mostly price series moved 
lower. Lactose is moving well through contracted agreements, but spot market 
activity is hit or miss. Some industry contacts report hearing rumors of spot 
sales at below published market prices. Demand is mixed. Domestic demand is solid 
and contacts say Oceania is buying as expected, in line with the Southern 
Hemisphere milk production season. Demand in Southeast Asia, however, is abysmal. 
Some contacts describe the market activity there as 'scary slow' and many 
manufacturers from across the globe are offering large volumes of lactose in an 
effort to gain market share and ease inventory burdens. U.S. lactose stocks are 
generally heavy. Some manufacturers are trying to adjust production schedules, 
where they can, in order to cut back on the lactose being made. The August 2017 
Dairy Market News average of the mostly price series for Central and West lactose 
was $0.3435, compared to $0.3745 one month ago and $0.2948 one year ago. NASS's 
Dairy Products report shows U.S. lactose production during July 2017 totaled 99.3 
million pounds, a 1.5 percent increase from one year ago, and 2.3 percent more 
than last month. Year to date lactose production through July is 661.9 million 
pounds, 3.2 percent more than a year ago. Month ending stocks, at 144.5 million 
pounds, are 13.6 percent higher than one year ago, and 5.1 percent more than June 
2017. At the GDT Event 195 on September 5, lactose prices across all contract 
periods averaged $0.3588 per pound, up 5.1 percent.

Including spot sales and up to 3 month contracts.                               
F.O.B. EDIBLE, NON PHARMACEUTICAL   .2200 - .4700    MOSTLY:   .2500 - .3600    


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