The milk-feed price ratio endured yet another loss in July. According to the USDA, the July ratio is 1.82 — a 0.06-point loss from June and 1.34 points less than a year ago.
Downward revision in corn and soybean prices brought the June ratio up 0.10 points to 1.88.
Feed prices turned back up again in July. The corn price climbed 13 cents to $5.61 for July. That is $2.29 higher than a year ago when it was $3.32 per bushel. The price of soybeans rose $1.00 to $14.20 per bushel. That is $6.64 higher than a year ago. Baled alfalfa hay climbed $5 to $177 per ton. That is $40 higher than a year ago.
The all-milk price used to calculate the July ratio was announced at $19.40 per hundredweight — an increase of just 10 cents. That price also is $2.20 less than a year ago.
A ratio of 1.82 means that a dairy producer can buy 1.82 pounds of feed for every pound of milk sold. Whenever the ratio meets or exceeds 3.0, it is considered profitable to buy feed and produce milk.