Lactose - Central and West
USDA - Thu Feb 07, 10:38AM CST
MD_DA770

     Lactose - Central and Western U.S.

     Report 6 - Released on February 07, 2019

     While lactose prices are largely unchanged, the bottom of the mostly price series moved
     lower. Manufacturers maintain that their stocks are largely in balance, however some lactose
     producers have growing inventories. Industry contacts report no problems moving higher mesh
     lactose or lactose that is certified by end users. However, lactose that does not hold
     special characteristics is under more pressure from weak permeate markets in SE Asia and
     competition from EU lactose. Demand for lactose in SE Asia has gone silent this week as much
     of the region is celebrating the Lunar New Year. Domestic demand is steady. Processors hope
     that the struggling whey permeate market does not portend future difficulties within lactose
     markets. To the contrary, some industry ratiocinations suggest that challenges brought on by
     the African Swine Fever and the depopulation of the Chinese swine herd may eventually create
     greater opportunities for lactose and whey permeate. They are hopeful that affected
     countries may seek to buy more pork from other sources, and Chinese farmers may soon seek to
     rebuild the swine herd. In both scenarios, lactose and whey permeate may be needed to
     support the pig litters. U.S. lactose production is steady to higher.


     DAIRY MARKET NEWS Monthly Averages
     The January 2019 Dairy Market News average of the mostly price series for Central and West
     lactose was $0.3700, compared to $0.3580 one month ago and $0.2146 one year ago.
     Prices for: Central and Western U.S., Spot Sales And Up to 3 Month Contracts, F.O.B.,
     Conventional, and Edible Lactose
     Price Range - Non Pharmaceutical; $/LB:                .2000 - .4500
     Mostly Range - Non Pharmaceutical; $/LB:               .3000 - .4200

     Information for the period February 4 - 8, 2019, issued weekly

     Secondary Sourced Information:

     NASS Dairy Products Report � Lactose Summary
     Released February 4, 2019, by the National Agricultural Statistics Service (NASS),
     Agricultural Statistics Board, United States Department of Agriculture (USDA).

     Selected Whey Derivatives Production � United States
                     Monthly Production (1000 pounds)   Percent Change from
                             Nov.       Oct.       Nov.       Nov.     Oct.
     Product                 2017       2018       2018       2017     2018
     Lactose, human and animal
                           86,105     85,771     97,884       13.7     14.1

     Selected Whey Derivatives � Cumulative Production January - November
                         Cumulative Production    Percent Change
                              (1000 pounds)        from
     Product                 2017       2018       2017
     Lactose, human and animal
                        1,026,906  1,022,365       -0.4
     1. Values are calculated from Dairy Products report data.

     Manufacturers' stocks end of month 2
                     End of month stocks (1000 pounds)  Percent Change from
                             Nov.       Oct.       Nov.       Nov.     Oct.
     Product                 2017       2018       2018       2017    2018
     Lactose, human and animal
                          143,073     89,824     86,321      -39.7    -3.9
     2. Stocks held by manufacturers at all points and in transit.


     Global Dairy Trade (GDT) Event
     At the GDT Event 229 on February 6, the lactose price for the April contract period was
     $0.4695 per pound, up 1.3 percent.


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

     NOVEMBER Total           43.4           - 13

     TOTAL, JAN � NOV        624.8           + 16
      1 China                141.0           + 59
      2 Mexico                84.3           + 6
      3 New Zealand           79.8           + 27
      4 Japan                 71.0           + 48
      5 Singapore             31.7           + 12
     Published by:
     Dairy Market News - Madison, WI
     MIKE BANDLI, (608)422-8592
     Email: mike.bandli@ams.usda.gov

     Additional Dairy Market News Information:
     Dairy Market News (DMN) by Phone: (608)422-8602
     DMN Website: https://www.ams.usda.gov/market-news/dairy
     DMN MARS (MyMarketNews): https://mymarketnews.ams.usda.gov/
     DMN Database Portal: https://www.marketnews.usda.gov/mnp/da-home