MD_DA770                                                                        
DA                                                                              
MD DA770 Lactose - Central and West                                             

MADISON, WI.  October 05, 2017 (REPORT 40)                                      

LACTOSE - CENTRAL AND WEST                                                      

The market tone for lactose is somewhat unsettled as market participants try to 
determine the direction of lactose prices. Many contacts are expecting the worst, 
but hoping for the best. Current lactose prices are steady to lower, with the top 
of the range and bottom of the mostly price series losing some ground. Industry 
contacts say supplies are mixed. Some manufacturers suggest they have committed 
stocks, while others have inventories that need to clear before the year end. 
Market demand appears to segmenting itself among four primary sectors based on 
geography. China and Southeast Asia continue to generate weak demand and 
considerable price pressures. Edible lactose is moving slowly, but often at 
prices near the bottom of the price range. Processors supplying standardization 
markets in Oceania describe intense competition and low prices from European 
produced lactose. Other international markets are stable, with buyers showing 
steady demand. And domestic markets have been solid. Manufacturers say customers 
are taking regular shipments and sometimes asking for additional loads. Lactose 
production is generally steady to lower as some processors are trying to keep 
inventories in balance with current demand. The September 2017 Dairy Market News 
average of the mostly price series for Central and West lactose was $0.2958, 
compared to $0.3435 one month ago and $0.3208 one year ago. 

Including spot sales and up to 3 month contracts.                               
F.O.B. EDIBLE, NON PHARMACEUTICAL   .2000 - .4400    MOSTLY:   .2250 - .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