MD_DA770 Lactose - Central and Western U.S. Report 37 - Released on September 10, 2020 The market tone for lactose is steady. The mostly price series narrowed, the top of the price range is unchanged, and the bottom of the price range moved lower. A few lower-priced spot sales appeared briefly on limited volumes. Most manufacturers report inventories are comfortable, and spot lactose prices are in the upper $.40s to the lower/mid $.50s. Manufacturers and buyers are posturing while trying to finalize Q4 contracts. Some contacts say there is more European lactose that is competing in a few international markets. U.S. lactose production is steady to lower as a few processors try to control the amount of higher whey protein concentrates they produce. DAIRY MARKET NEWS MONTHLY AVERAGES The August 2020 Dairy Market News average of the mostly price series for Central and West lactose was $0.5136, compared to $0.5170 in July, and $.2973 one year ago. 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: .3600 - .6350 Mostly Range - Non Pharmaceutical; $/LB: .4600 - .5500 Information for the period September 7 - 11, 2020, issued weekly Secondary Sourced Information: DAIRY PRODUCTS REPORT – LACTOSE SUMMARY Released September 3, 2020, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, United States Department of Agriculture (USDA). Monthly Production – United States Monthly Production (1000 pounds) Percent Change from July June July July June Product 2019 2020 2020 2019 2020 Lactose, human and animal 106,989 101,024 99,629 -6.9 -1.4 Cumulative Production January - July Cumulative Production (1000 pounds) Percent Change from Product 2019 2020 2019 Lactose, human and animal 758,539 658,624 -13.2 Manufacturers' stocks end of month 1 End of month stocks (1000 pounds) Percent Change from July June July July June Product 2019 2020 2020 2019 2020 Lactose, human and animal 114,247 96,259 98,006 -14.2 1.8 1. Stocks held by manufacturers at all points and in transit. U.S. LACTOSE EXPORTS, H.S. CODE 1702110000(FAS) 2020 Exports % Change From (Million Lb.) 1 Year Ago JULY Total 56.3 - 10 TOTAL, JAN - JULY 408.2 + 70 1 China 61.4 - 1 2 New Zealand 51.9 + 1 3 Japan 46.1 + 8 4 Mexico 43.2 - 30 5 Indonesia 30.7 + 57 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