MD_DA770

     Lactose - Central and Western U.S.

     Report 32 - Released on August 08, 2019

     Lactose prices are unchanged except for the bottom of the mostly price series moving lower.
     The spot market continues to face pressures caused by the African swine fever and trade
     issues with China. However, industry contacts suggest inventories are still mostly in check.
     Steady demand for preferred brands and aggressive selling by manufacturers have kept
     stockpiles from getting out of control. Some processors have also slowed production.
     Aggregate lactose supply and demand seem to be relatively well-balanced. Quarter 3 contract
     shipments are moving well, and some end users are taking extra loads, but market
     participants have some anxiety as they prepare for quarter 4.


     DAIRY MARKET NEWS Monthly Averages
     The July 2019 Dairy Market News average of the mostly price series for Central and West
     lactose was $0.3085, compared to $0.3150 in June, and $.3099 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:                .1800 - .4500
     Mostly Range - Non Pharmaceutical; $/LB:               .2400 - .3650

     Information for the period August 5 - 9, 2019, issued weekly

     Secondary Sourced Information:

     Dairy Products Report ± Whey Derivatives Summary
     Released August 1, 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
                              June        May       June       June      May
     Product                  2018       2019       2019       2018     2019
     Lactose, human and animal
                            95,874    109,247     108,442      13.1     -0.7

     Selected Whey Derivatives ± Cumulative Production January - June
                    Cumulative Production (1000 pounds)  Percent Change from
     Product                  2018       2019                  2018
     Lactose, human and animal
                           567,465    649,920                  14.5
     1. Values are calculated from Dairy Products report data.

     Manufacturers' stocks end of month 2
                      End of month stocks (1000 pounds)  Percent Change from
                              June        May       June       June      May
     Product                  2018       2019       2019       2018     2019
     Lactose, human and animal
                           102,065    125,412    114,948       12.6     -8.3
     2. Stocks held by manufacturers at all points and in transit.


     Global Dairy Trade (GDT) Event
     At the GDT Event 241 on August 6, the lactose price for the August contract period was
     $0.3479 per pound, down 11.5 percent.


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

     JUNE Total               57.0           - 5

     TOTAL, JAN-JUNE         319.7           - 10
      1 China                 54.3           - 34
      2 Mexico                48.0           - 1
      3 New Zealand           44.4           - 12
      4 Japan                 35.8           - 2
      5 Singapore             20.8           + 19
     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