Lactose - Central and West
USDA - Thu Dec 07, 10:42AM CST
MD DA770 Lactose - Central and West                                             

MADISON, WI.  December 07, 2017 (REPORT 49)                                     

LACTOSE - CENTRAL AND WEST                                                      

Lactose prices held steady on the range, but slipped on the mostly price series. 
Lower spot prices and competition from other American and European manufacturers 
are putting pressure on the lactose market. Industry contacts say demand is 
steady, but prices favorable to manufacturers are not able to attract a lot of 
buyer interest. A few manufacturers report comfortable inventories, while others 
say lactose is readily available. Some customers feel their lactose needs can be 
easily met on the spot market and are hesitant to set quarterly contracts. To 
combat this strategy, a number of manufacturers have shifted their focus to 
annual contracting in order to assure a home for some portion of future lactose 
production. The November 2017 Dairy Market News average of the mostly price 
series for Central and West lactose was $0.2417, compared to $0.2633 one month 
ago and $0.3525 one year ago. NASS's Dairy Products report shows U.S. lactose 
production during October 2017 totaled 93.5 million pounds, a 4.1 percent 
increase from one year ago, but 1.6 percent less than last month. Year to date 
lactose production through October is 948.0 million pounds, 3.2 percent more than 
a year ago. Month ending stocks, at 140.0 million pounds, are 24.6 percent higher 
than one year ago, but 8.5 percent less than September 2017. 

Including spot sales and up to 3 month contracts.                               
F.O.B. EDIBLE, NON PHARMACEUTICAL   .1700 - .3500    MOSTLY:   .1800 - .2600    

U.S. Lactose Exports, H.S. Code 1702110000(FAS)
                 2017 Exports      % Change From
                 (Million Lb.)       1 Year Ago

October Total            50.5           - 3

TOTAL, JAN - OCT        486.1           + 2
 1 China                 80.6           + 2
 2 Mexico                70.6           + 17
 3 New Zealand           58.2           - 29
 4 Japan                 42.6           + 6
 5 Australia             28.5           + 114

1100CT 608.422.8592
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