Strong milk prices did their part to support the milk-feed price ratio’s advancement during May.
The ratio advanced to 3.36 during May — a gain of 0.23 points from April and 1.17 points higher than a year ago.
The all-milk price used in the calculation increased another $2.10 during May, following a rigorous $2.80 advance during April. The all-milk price for May stands at $20.30 per hundredweight. That is $9.30 higher than the all-milk price used a year ago.
The price for alfalfa hay also increased, but the prices for corn and soybeans declined slightly.
The price per ton of baled alfalfa hay increased $16.30 — to $109 per ton. That also is $9 more than a year ago.
The corn price used in the May calculation fell 11 cents — to $2.78 per bushel. That is still 40 cents higher than a year ago. Meanwhile, the soybean price fell only 2 cents during May — to $9.60 per bushel. However, that is $3.53 higher than May 2003.
Whenever the ratio meets or exceeds 3.0, it is considered profitable to buy feed and produce milk.