MD_DA770 DA MD DA770 Lactose - Central and West MADISON, WI. October 12, 2017 (REPORT 41) LACTOSE - CENTRAL AND WEST Lactose prices are steady to lower. The bottoms of the range and the mostly price series took steps downward. Industry contacts report a number of spot sales moving at lower prices within the range. Some manufacturers are competing heavily with lactose from other parts of the world. Lactose stocks range from committed to heavy and many processors are trying to reduce their inventories prior to year-end. Furthermore, production is steady to lower as some manufacturers also try to cap new lactose moving into the warehouse. NASS's Dairy Products report shows U.S. lactose production during August 2017 totaled 97.8 million pounds, a 5.6 percent increase from one year ago, but 1.7 percent less than last month. Year to date lactose production through August is 760.1 million pounds, 3.5 percent more than a year ago. Month ending stocks, at 159.1 million pounds, are 20.6 percent higher than one year ago, and 9.7 percent more than July 2017. Including spot sales and up to 3 month contracts. F.O.B. EDIBLE, NON PHARMACEUTICAL .1800 - .4400 MOSTLY: .2100 - .3300 U.S. Lactose Exports, H.S. Code 1702110000(FAS) 2017 Exports % Change From (Million Lb.) 1 Year Ago August Total 47.3 - 12 TOTAL, JAN - AUGUST 387.7 + 3 1 China 63.8 - 1 2 Mexico 56.4 + 15 3 New Zealand 49.0 - 25 4 Japan 33.2 + 6 5 Indonesia 23.8 - 19 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