January cull cow prices slightly lower

Estimated U.S. January 2015 cull cow prices (beef and dairy combined) averaged $112.00/cwt., according to the USDA/NASS Ag Prices report. The average is down $3.00/cwt. from December’s revised estimate, but $23.70/cwt. more than January 2014. It is the lowest monthly average since June 2014.

 

Read also: 2014 annual average replacement dairy cow prices highest since 2008

 

Milk prices push January milk-feed price ratio lower

Tumbling milk prices weakened in relationship to feed costs in USDA’s latest monthly milk-feed price index.

The preliminary January 2015 milk-feed price ratio was estimated at 2.09, down from December’s revised estimate of 2.38, and the lowest since September-October 2013.

The index is based on the current national average milk price in relationship to national average feed prices for a ration of 51% corn, 8% soybeans and 41% alfalfa hay.

The January 2015 U.S. average all-milk price was $17.60/cwt., down $2.80 from December, and $5.90 less than January 2014.

January corn and soybean prices were steady with December, but alfalfa hay prices were down (see table).

 

Milk-feed price ratio

 

 

 

January 2014

December 2014

January 2015

Milk ($/cwt.)

23.50

20.40

17.60

Corn ($/bu.)

4.42

3.78

3.81

Soybeans ($/bu.)

12.90

10.30

10.30

Alfalfa hay ($/ton)

186

183

174

Milk-feed ratio    

2.46

2.38

2.09

Source: USDA Ag Prices report

 

 

Read also: January milk prices lower

 

CME Class III Futures, Feb. 27

 

Close**

Change

Month

 ($/cwt.)

(¢/cwt.)

Jan. 2015 *

16.18

 

Feb.

15.49

n.c.

March

15.69

19

April

15.87

38

May

16.13

28

June

16.93

33

July

17.41

23

Aug.

17.84

25

Sept.

17.83

23

Oct.

17.85

20

Nov.

17.71

9

Dec.

17.33

n.c.

2015 ave.

16.86

 

Source: CME

 

 

* Final federal order price

 

 

 

Daily CME Cash Trading: Feb. 27

 

Close

Daily change

 

($/lb.)

(¢/lb.)

Cheddar barrels

1.4925

up 0.75¢

Cheddar blocks

1.5450

no change

NFDM Grade A

1.1550

up 7.0¢

Butter Grade AA

1.6950

up 4.0¢