Slightly lower monthly average milk prices offset similar declines in feed prices, holding the June 2014 milk-feed price ratio steady at 2.28. While the preliminary June index is unchanged from May’s revised estimate, it remains well above the 1.52 recorded in June 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 June 2014 U.S. average all-milk price was $23.30/cwt., compared to $24.20/cwt. in May 2014 and $19.50/cwt. in June 2013. 

June corn, at $4.37/bushel, was down 34¢ from May and $2.60 less than June 2013.

June 2014 soybeans averaged $14.10/bushel, down 30¢ from May and $1.00 less than June 2013.

Alfalfa hay averaged $222/ton in June, down $2 from May 2014, but $4 more than June 2013.

Milk-feed price ratio*

 

 

 

June 2013

May 2014

June 2014

Milk ($/cwt.)

19.50

24.20

23.30

Corn ($/bu.)

6.97

4.71

4.37

Soybeans ($/bu.)

15.10

14.40

14.10

Alfalfa hay ($/ton)

220

224

222

Milk-feed ratio    

1.52

2.24

2.24

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 rmodeled feed

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