Lactose - Central and West
USDA - Thu Nov 09, 10:57AM CST
MD DA770 Lactose - Central and West                                             

MADISON, WI.  November 9, 2017 (REPORT 45)                                     

LACTOSE - CENTRAL AND WEST                                                      

Lactose prices are steady to lower, moving down at the top of the range and bottom of the 
mostly price series. While a few stalwarts remain near the top of the range, a number of 
delayed shipments from quarterly contacts have cleared and prices are trending lower. 
U.S. and EU manufacturers are competing fiercely at the bottom end of the price range, 
trying to win available business. Some industry contacts suggest the market is in 
shambles and fear price pressures will continue well into 2018. Other manufacturers, who 
have secured end user approvals, say buyers are asking for more lactose and inventories 
have been kept lean. Production is generally steady and stocks vary by manufacturer and 
mesh size. The October 2017 Dairy Market News average of the mostly price series for 
Central and West lactose was $0.2633, compared to $0.2958 one month ago and $0.3416 one 
year ago. NASS's Dairy Products report shows U.S. lactose production during September 
2017 totaled 95.2 million pounds, a 0.3 percent increase from one year ago, but 2.1 
percent less than last month. Year to date lactose production through September is 854.6 
million pounds, 3.1 percent more than a year ago. Month ending stocks, at 153.1 million 
pounds, are 23.3 percent higher than one year ago, but 4.8 percent less than August 2017. 

Including spot sales and up to 3 month contracts.                               
F.O.B. EDIBLE, NON PHARMACEUTICAL   .1800 - .3500    MOSTLY:   .1900 - .3000    

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

September Total          48.0           - 4

TOTAL, JAN - SEP        435.7           + 2
 1 China                 70.8           - 1
 2 Mexico                62.6           + 15
 3 New Zealand           54.1           - 26
 4 Japan                 38.2           + 7
 5 Australia             25.9           + 106

1100CT 608.422.8592
USDA/AMS/Dairy Market News, Madison, Wisconsin
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