October milk-feed price ratio improves
Slightly higher monthly average milk prices combined with lower feed prices to push the preliminary October 2013 milk-feed price ratio above 2.0 for the first time in 31 months. At 2.09, the index is up from 1.88 in September 2013 and 1.74 in October 2012, and is the highest since March 2011.
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.
The U.S. average all-milk price was $20.30/cwt., compared to $20.10/cwt. in September 2013 and $21.60/cwt. in October 2012.
October corn, at $4.49/bushel, was down 91¢ from September and $2.29 less than October 2012. It's the lowest U.S. average corn price since October 2010.
October 2013 soybeans averaged $12.60/bushel, down 70¢ from September and down $1.60 from October 2012. It's the lowest U.S. average soybean price since February 2012.
Alfalfa hay averaged $193/ton in October, down $1 from September and $19 less than October 2012. It's the lowest U.S. average hay price since January 2012.
To see the full USDA Ag Prices report, click here.