Milk-feed profitability ratio drops again

 Resize text         Printer-friendly version of this article Printer-friendly version of this article

For the second straight month, the USDA’s milk-feed profitability ratio dropped.

According to the Agricultural Prices report released Thursday, the preliminary milk-feed ratio for January was 1.58, down from December’s adjusted figure of 1.66. However, it still remains above last July’s historic low of 1.34.

The all-milk price used in USDA’s calculations was down 90 cents from last month at $20.00 per hundredweight. 

Feed prices also weighed on the milk-feed ratio. Corn was $6.98 per bushel in January, compared to $6.87 in December. Alfalfa hay saw no change in pricing from last month’s report, remaining at $217 per ton. Soybean prices dropped by 20 cents to $14.10 per bushel.

Some people question the validity of the milk-feed ratio. See this story. But the USDA has been using the same formula for years, comparing the same commodities. Therefore, it can serve as a relative measure for comparing different points in time.



Comments (0) Leave a comment 

Name
e-Mail (required)
Location

Comment:

characters left


Kuhn VB Round Balers

Field performance, bale quality and bale density are fundamental to the profitability of every baling operation. Kuhn VB round balers ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Leads to Insight