Lower milk prices combined with slightly higher corn and soybean costs, reducing USDA’s index of the relationship between the value of milk and dairy feed – the milk-feed price ratio.

The preliminary November 2014 milk-feed price ratio was estimated at 2.80, down from October’s revised estimate of 2.91, but still above the 2.27 ratio in November 2013.

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

The November 2014 U.S. average all-milk price was $3.40/cwt., compared to $24.90/cwt. in October 2014 and $21.60/cwt. in November 2013. 

November corn, at $3.57/bushel, was up 1¢ from October, but 80¢ less than November 2013.

November 2014 soybeans averaged $10.10/bushel, up 13¢ from October, but  $2.60 less than November 2013.

Alfalfa hay averaged $184/ton in November, down $10 from October 2014 and $4 less than November 2013.

 

Milk-feed price ratio*

 

 

 

Nov. 2013

Oct. 2014

Nov. 2014

Milk ($/cwt.)

21.60

24.90

23.40

Corn ($/bu.)

4.37

3.56

3.57

Soybeans ($/bu.)

12.70

9.97

10.10

Alfalfa hay ($/ton)

188

194

184

Milk-feed ratio    

2.27

2.91

2.80

Source: USDA Ag Prices report

 

* The price of commercial prepared dairy feed is

based on current United States prices received for

corn, soybeans, and alfalfa hay. The modeled feed

ration uses 51% corn, 41% alfalfa hay and 8% soybeans