Can demand for standardization keep up going forward?
Europe
Demand for standardization remains strong but EU origins may need export demand soon
Strong demand for standardization still lifts the lactose market to higher levels but with the Northern hemisphere getting out of season questions arise if demand can sustain the current price of EUR 1550–1600 ex works going forward. What is interesting for EU origins is that the gap with US product narrowed in export markets. Prices are now almost on par.
Americas
US lactose market is active but seeks direction
The market turned very firm by the end of June but in early July some more offers became available. The gap between product sold domestically and export quality narrowed a bit. Prices of premium product are at USD 0.75/lb (1655/t) whereas local product now trades at USD 0.70/lb (1545/t) ex works. Demand for standardization in the Southern hemisphere is expected to be good at the start of the new season so downward risk appears to be limited.
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