MD_DA770                                                              
DA                                                                    
MD DA770 Lactose - Central and West                                   

MADISON, WI.  July 09, 2009 (REPORT 27)                               

LACTOSE - CENTRAL AND WEST                                            
                                                                      
Third quarter lactose contracts, July monthly contracts and spot market 
prices led to the lactose range and mostly price series moving higher on 
the bottom.  The market is firm.   Manufacturers report interest is 
steady to higher as some international buyers are reportedly still 
seeking product for third quarter needs.  LTL's are moving at 3 - 15 
cent premiums to the market.  Domestic inventories vary from location to 
location, with some producers having to decline bids due to tight 
supplies or outsource some product to meet contract needs.  Reselling 
activity is reportedly higher for the week as various buyers continue to 
seek out commitments to fill lactose needs during the third quarter.  
The June 2009 Dairy Market News average of the mostly price series for 
lactose was $.1742 compared to $.2775 in June 2008.
DAIRY PRODUCTS:  NASS's Dairy Products report shows HUMAN and ANIMAL 
lactose production during May 2009 increased 2.6% compared to April 2009 
to 60.0 million pounds but was 8.5% lower than May 2008 production.  
Month ending stocks, at 73.3 million pounds, are 2.9% lower than one 
month ago and 12.1% lower than one year ago.    
                                                                      
Including spot sales and up to 3 month contracts.  Mesh size 30 - 100.
F.O.B. EDIBLE:         .1500 - .2800    MOSTLY:   .1800 - .2200       

1100CT janet.linder@ams.usda.gov  608.250.3207