May Milk-Feed Price Ratio Slips
~~May Milk-Feed Price Ratio Slips on Falling Milk Price/Higher Feed
The preliminary May milk feed price ratio slipped from April, according to the Agriculture Department’s latest Ag Prices report issued this afternoon. The May milk-feed price ratio is at 2.28, down from 2.43 in April, and compares to 1.53 in May 2013.
The index is based on the current milk price in relationship to feed prices for a ration of 51% corn, 8% soybeans and 41% alfalfa hay, in other words, 1lb. of milk today can purchase 2.28lbs. of dairy feed containing that blend.
The May U.S. average all-milk price was $24.70/cwt., down from $25.30/cwt. in April, and compares to $19.70/cwt. in May 2013.
May corn, at $4.71/bushel, was unchanged from April, but $2.26 less than May 2013.
Soybeans averaged $14.50/bushel, up 20¢ from April, but 40¢ below May 2013, and alfalfa hay averaged $224/ton, up $18 from April, but $3/ton more than May 2013.
Looking at the cow side of the ledger; the report shows the preliminary May cull price for beef and dairy combined averaged $104/cwt., up $1/cwt. from April, and $22.20/cwt. above May 2013.