Lactose - Central and West
MD_DA770

     Lactose - Central and Western U.S.

     Report 32 - Released on August 06, 2020

     Lactose prices are generally unchanged but moved lower at the bottom of the mostly prices
     series. Many manufacturers report production is steady, and supplies are highly committed to
     filling contractual obligations. But some buyers say they are getting more offers of
     available lactose at spot prices into the mid-forty cent range. While the market tone for
     lactose has remained strong throughout the summer, it is not immune to some of the
     uneasiness felt throughout dairy markets and world economies. Demand has cooled in recent
     weeks. What is not clear is whether this is a reversal of fortunes for the dairy
     carbohydrate, or just a mid-summer lull. Some industry contacts say they expect demand to
     pick up again as fall draws near. They think the need for lactose in standardization, infant
     formula and feed may each pull heavily on lactose volumes in the months to come. Initial
     reports suggest the hog population in China is returning to pre-African swine fever levels
     and the need for dairy carbohydrates may increase.

     DAIRY MARKET NEWS MONTHLY AVERAGES
     The July 2020 Dairy Market News average of the mostly price series for Central and West
     lactose was $0.5170, compared to $0.4618 in June, and $.3085 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:                .4000 - .6300
     Mostly Range - Non Pharmaceutical; $/LB:               .4500 - .5800

     Information for the period August 3 - 7, 2020, issued weekly

     Secondary Sourced Information:

     DAIRY PRODUCTS REPORT � LACTOSE SUMMARY
     Released August 4, 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
                              June        May       June      June      May
     Product                  2019       2020       2020      2019     2020
     Lactose, human and animal
                           108,551     94,059    101,076      -6.9      7.5

     Cumulative Production January - June
                    Cumulative Production (1000 pounds)  Percent Change from
     Product                  2019       2020       2019
     Lactose, human and animal
                           651,550    559,047      -14.2

     Manufacturers' stocks end of month 1
                      End of month stocks (1000 pounds)  Percent Change from
                               June        May        June       June      May
     Product                  2019       2020       2020      2019     2020
     Lactose, human and animal
                           117,096     98,314     95,690     -18.3     -2.7
     1. Stocks held by manufacturers at all points and in transit.


     GLOBAL DAIRY TRADE (GDT) EVENT
     At the GDT Event 265 on August 4 the lactose price for the October contract period was
     $0.6119 per pound, up 5.7 percent from the last GDT event.


     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