MD_DA770                                                                        
DA                                                                              
MD DA770 Lactose - Central and West                                             

MADISON, WI.  September 28, 2017 (REPORT 39)                                    

LACTOSE - CENTRAL AND WEST                                                      

Lactose prices are unchanged on the range, but moved lower on the mostly price 
series. Industry contacts continue to describe supply and price pressures in some 
international markets. Contacts suggest there is considerable competition from 
European lactose in Southeast Asia and in Oceania. Within these markets, buyers 
appear to be holding off, expecting further price concessions. Domestic lactose 
demand, however, is relatively steady. Manufacturers report Q4 contracting is 
going more smoothly than Q3 contracting, and in some cases, end users are taking 
a little more lactose than contracted in Q3. A few market participants further 
suggest they are starting to see prices stabilize slightly in the U.S. lactose 
market. Production is generally steady. However, industry contacts say they are 
seeing more manufacturers back away from WPI and WPC80 production. They 
anticipate this move will reduce the amount of lactose available and help further 
stabilize prices over time.

Including spot sales and up to 3 month contracts.                               
F.O.B. EDIBLE, NON PHARMACEUTICAL   .2000 - .4700    MOSTLY:   .2400 - .3300    


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