Lactose - Central and West - Thu Aug 06, 3:30PM UTC 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
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