Another 50-cent drop in the all-milk price led the way for further declines in the milk-feed ratio. The April milk-feed ratio was announced today at 2.47, a drop of 0.23 points compared to March and 0.71 points less than a year ago.
According to the USDA’s “Agricultural Prices” report released April 28, the April all-milk price was reported as $12.10 per hundredweight. That’s a whopping $3.10 per hundredweight less than the same time one year ago.
On the input side, feed prices were mixed. Corn and alfalfa hay were both up while the price of soybeans declined. Corn climbed 5 cents per bushel to reach $2.11, and baled alfalfa was up $10 to hit $110 per ton. Soybeans fell 18-cents to $5.39 per bushel. One year ago, the prices of corn, soybeans and baled alfalfa hay stood at $2.00, $6.03 and $105, respectively.
The March milk-feed ratio also was revised. The ratio was originally reported as 2.77, the April report lowered it to 2.70. Also revised in the report were the price of corn and soybeans used in the March ratio. Corn was revised up 5 cents to $2.06 per bushel. Soybeans were revised up two cents to $5.57 per bushel.
The milk-feed ratio represents the pounds of 16-percent mixed dairy feed equal in value to 1 pound of whole milk. Therefore, with a 2.47 ratio in April, a dairy producer could buy 2.47 pounds of feed for every 1 pound of milk sold.
Whenever the ratio meets or exceeds 3.0, it is considered profitable to buy feed and produce milk.