MD_DA770

     Lactose - Central and Western U.S.

     Report 8 - Released on February 21, 2019

     Prices and demand for lactose are generally steady. Manufacturers report some Q2 contract
     prices are getting settled at levels comparable to or slightly higher than Q1. However, some
     industry contacts suggest current spot prices are struggling a bit. Lower mesh lactose that
     is interchangeable with other carbohydrates is under pricing pressures. Lactose exports from
     the EU were higher in Q4, creating added competition for U.S. lactose in some markets.
     Industry contacts say food lactose in the EU is selling at higher prices than infant formula
     lactose due to tight stocks. U.S. lactose inventories are generally tight, or at least,
     committed. Manufacturers suggest that because stocks are tight in U.S., and in Europe, the
     market should continue to be firm. However, the lingering trade issues, African Swine Fever
     and perceived cooling Chinese economy are creating concerns for lactose manufacturers.
     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:               .3100 - .4200


     Information for the period February 18 - 22, 2019, issued weekly

     Secondary Sourced Information:

     Global Dairy Trade (GDT) Event
     At the GDT Event 230 on February 19, the lactose price for the April contract period was
     $0.4527 per pound, down 2.9 percent.
     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