Milk prices push July milk-feed price ratio higher

Higher monthly average milk prices combined with lower feed prices, improving the preliminary July 2014 milk-feed price ratio. At 2.44, the index is up from 2.20 in June 2014, and well above the 1.53 ratio in July 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.

The July 2014 U.S. average all-milk price was $23.40/cwt., compared to $23.20/cwt. in June 2014 and $19.10/cwt. in July 2013. 

July corn, at $3.80/bushel, was down 69¢ from June and $2.99 less than July 2013.

July 2014 soybeans averaged $12.70/bushel, down $1.70 from June and $2.60 less than July 2013.

Alfalfa hay averaged $216/ton in July, down $6 from June 2014, but $7 more than July 2013.


Milk-feed price ratio*




July 2013

June 2014

July 2014

Milk ($/cwt.)




Corn ($/bu.)




Soybeans ($/bu.)




Alfalfa hay ($/ton)




Milk-feed ratio    




Source: USDA Ag Prices report


* The price of commercial prepared dairy feed is

based on current United States prices received for

corn, soybeans, and alfalfa hay. The modeled feed

ration uses 51% corn, 41% alfalfa hay and 8% soybeans


Weekly dairy cow slaughter under federal inspection

Week ending July 19: 53,100 head

Year-to-date (YTD) 2014: 1,555,1000 head

YTD compared to same period 2013: -180,100 head

Highlights: For the week, 32% came from USDA Zone 5 (IL, IN, MI, MN, OH & WI); 23% came from USDA Zone 9 (AZ, CA, HI & NV).

Source: USDA Weekly Cow Slaughter Report


New Holland Sales Stables

Dairy replacement sales results from New Holland, Pa. on July 30. Compared to last week, dairy cows sold mostly 100-200 higher compared to a very light test last week. Majority of cattle offered were from a consigned herd made up of primarily crossbred cows. Demand was moderate. Bred heifers sold mostly 100-200 higher. Demand was good. Trade was active. Wednesday's supply included 193 fresh milking cows, 28 springing cows, 29 short bred cows, 72 springing heifers, 39 short bred heifers, 55 open heifers, and 15 bulls. One hundred percent of reported supply Holsteins unless otherwise noted. All sales sold on a per head basis.


Fresh cows

Supreme: 2400-3000; Jersey/crossbred 1800-2300

Approved: 2000-2400; Jersey/crossbred 1500-1775

Medium: 1450-1975; Jersey/crossbred 1200-1450

Common: 1075-1400; Jersey/crossbred 1025-1150


Springing cows


Supreme: 1950-2300

Approved: 1650-1850

Medium: 1400-1600

Common: 1000-1350


Springing heifers (7-9 months)

Supreme: 2000-2425; Jersey/crossbred 1325-1875

Approved: 1700-1950; Jersey/crossbred 1050-1275

Medium: 1400-1650

Common: 1000-1200


Bred heifers (4-6 months)          

Supreme: 1925-2225

Approved: 1675-1800

Medium: 1450-1600

Common: 1100-1375


Short bred heifers (1-3 months)

Supreme: 1650-1725


Open Heifers


600-900 lbs 1085-1135

900-1200 lbs 1400-1435



600-900 lbs 885-950

900-1200 lbs 1185-1300

1200-1500 lbs 1300-1400



600-900 lbs 700-825

900-1200 lbs 910-1050


July Credit Managers' Index improves

Treading water through the first six months of 2014, the economy’s future is beginning to brighten, according to the National Association of Credit Management’s monthly economic report.

The CMI monitors "positive" and “negative” factors in U.S. manufacturing and service sectors. Positive factors include sales, new credit applications and amount of credit extended. Negative factors include rejections of credit applications, accounts placed for collection, and dollar amount beyond terms.

Positive factors in NACM’s July Credit Managers’ Index (CMI) reached their highest point in more than four years. And, although improvement was small, changes in some negative factors trended in the right direction.

One cloud: countries importing U.S. goods continue to lag in their economic recovery. However, consumer attitude is improving, with consumer confidence the highest level since prior to the recession.

Given that the CMI is often predictive, it would appear that economic conditions for the coming months will continue tracking in a positive direction, the report concluded.

For a full breakdown of the manufacturing and service sector data and visuals, view the complete July 2014 report at CMI archives may also be viewed on NACM’s website at

NACM and its network of affiliated associations are the leading resource for credit and financial management information, education, products and services.