MD_DA770 Lactose - Central and Western U.S. Report 27 - Released on July 01, 2020 As Q2 lactose contracts wrap up and Q3 contract start to ship, lactose prices moved higher on both the price range and mostly price series. Manufacturers report inventories are tight and mostly committed into contracts. Buyers are seeking price offers for Q4 to assure supply for longer durations. Lactose processing has increased as cheese production has increased, but weakness in higher whey protein concentration markets has held back some lactose production. A few contacts suggest higher lactose prices are opening the door for substitutions in some markets. Mexican buyers are looking for more maltodextrin to use in place of higher priced lactose. Many industry contacts do not think the current market conditions are sustainable, but with lactose shipping as soon as it clears testing and manufacturer and buyer safety stocks very low, it is difficult to see a correction coming in the next few months. 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: .3300 - .6400 Mostly Range - Non Pharmaceutical; $/LB: .4400 - .5700 Information for the period June 29 - July 3, 2020, issued weekly Published by: Dairy Market News - Madison, WI MIKE BANDLI, (608)422-8592 Email: mike.bandli@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 (My Market News): https://mymarketnews.ams.usda.gov