Lactose - Central and West
USDA - Thu Mar 08, 11:04AM CST
MD_DA770                                                                        
DA                                                                              
MD DA770 Lactose - Central and West                                             

MADISON, WI.  March 08, 2018 (REPORT 10)                                        

LACTOSE - CENTRAL AND WEST                                                      

Lactose prices are unchanged at the top of the range and mostly price series, but 
moved slightly higher at the bottom of each price series. The lactose market 
seems to have found a stable tone. Inventories are mixed. While a few 
manufacturers report committed supplies, others say their inventories are 
sufficient to meet most buyer requests. A few manufacturers appear to have stocks 
they want to clear before spring, as indicated by the occasional large sale or 
discounted spot sale at the bottom end of the price range. Industry contacts also 
suggest mixed demand. Contacts say demand from Asia has picked up a little. But 
in Oceania, U.S. processors are facing aggressive competition and low prices from 
European lactose. Some say EU producers are targeting New Zealand in efforts to 
gain market share. U.S. lactose production is steady to lower due to some down 
time of dryers and lower whey protein isolate production. Quarter 2 contracting 
is active and a number of processors report pushing price offers a few pennies 
due to tight stocks and strong demand. However, increasing freight rates and some 
low prices offered by competitors are not making the negotiations any easier.

The February 2018 Dairy Market News average of the mostly price series for 
Central and West lactose was $0.2159, compared to $0.2146 one month ago and 
$0.3750 one year ago. 

NASS's Dairy Products report shows U.S. lactose production during January 2018 
totaled 94.1 million pounds, a 1.5 percent increase from one year ago, but 2.9 
percent less than last month. Month ending stocks, at 129.3 million pounds, are 
16.7 percent higher than one year ago, but 4.4 percent less than December 2017. 

Including spot sales and up to 3 month contracts.                               
F.O.B. EDIBLE, NON PHARMACEUTICAL   .1650 - .3500    MOSTLY:   .1800 - .2450    


U.S. Lactose Exports, H.S. Code 1702110000(FAS)
                 2018 Exports      % Change From
                 (Million Lb.)       1 Year Ago

TOTAL, JAN               49.7           +  6
 1 Mexico                 9.3           - 24
 2 China                  8.8           + 35
 3 New Zealand            5.5           -  1
 4 Japan                  5.2           +  4
 5 Indonesia              4.4           + 35


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