The April ratio is 2.54, up 0.14 points from March and 0.06 points higher than a year ago.
The milk-feed price ratio improved further in April. According to the USDA’s announcement of feed-price ratios on Apr. 30, the April ratio increased to 2.54 — a gain of 0.14 points. One year ago the ratio was 2.48.
The gain is in response to stronger milk prices and a drop in corn and soybean prices.
In April, the all-milk price used to calculate the April ratio increased 80 cents to $16.40. One year ago, the all-milk price was $12.10.
The corn price used to calculate the April ratio fell 23 cents, which put it at $3.20 per bushel. Soybeans declined 14 cents to $6.81 per bushel. One year ago, the prices for corn and soybeans were $2.11 and $5.52, respectively.
Although corn and soybeans declined in price, baled alfalfa hay increased $8 to $128 per ton. That’s up $20 versus a year ago.
The USDA issued a revision to the March milk-feed ratio, decreasing it from 2.41 to 2.40.
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 2.54 ratio in April, a dairy producer could buy 2.54 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.