MD_DA770

     Lactose - Central and Western U.S.

     Report 28 - Released on July 11, 2019

     Lactose prices moved lower at the bottom of the range, but otherwise held steady. Quarter 3
     contract prices are now in play, and, in some cases, buyers and sellers have come to terms
     through the end of the year. Some end users are willing to lock in prices to assure coverage
     into the future, especially if the value of the brand is lionized. Contracted prices have
     tended to be well above spot market prices for some time, but a few market observers
     anticipate this gap may start to narrow as time passes. The African swine fever and issues
     with our largest trade partners continue to weigh heavily on market demand. While hope is
     not a valid strategy, many in the industry are adjusting while they wait, and hope, for some
     relief to the swine flu epidemic and trade agreements to be settled. Lactose production is
     steady.
     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:                .1800 - .4500
     Mostly Range - Non Pharmaceutical; $/LB:               .2500 - .3700

     Information for the period July 8 - 12, 2019, issued weekly

     Secondary Sourced Information:

     Dairy Products Report ± Whey Derivatives Summary
     Released July 3, 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
                              May        Apr.       May        May      Apr.
     Product                  2018       2019       2019       2018     2019
     Lactose, human and animal
                            96,204    108,038    109,465       13.8      1.3

     Selected Whey Derivatives ± Cumulative Production January - May
                    Cumulative Production (1000 pounds)  Percent Change from
     Product                  2018       2019                  2018
     Lactose, human and animal
                           471,591    541,696                  14.9
     1. Values are calculated from Dairy Products report data.

     Manufacturers' stocks end of month 2
                      End of month stocks (1000 pounds)  Percent Change from
                              May        Apr.       May        May      Apr.
     Product                  2018       2019       2019       2018     2019
     Lactose, human and animal
                           105,669    115,951    122,763       16.2     5.9


     U.S. Lactose Exports, H.S. Code 1702110000(FAS)
                      2019 Exports      % Change From
                      (Million Lb.)       1 Year Ago

     MAY Total                51.6           - 12

     TOTAL, JAN-MAY          262.7           - 11
      1 China                 44.6           - 34
      2 Mexico                40.8            ---
      3 New Zealand           38.1           - 14
      4 Japan                 29.7           + 3
      5 Singapore             15.9           + 15
     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