FEED RATIO

The relationship between the price for which a unit of livestock can be sold in the commodities markets and the price of the food required to raise that unit to market weight. The feed ratio takes the market price of the animal at sale and divides it by the price of the food that the animal must consume. Examples include the hog-corn ratio and the steer-corn ratio. These ratios divide the hundredweight price of the animal by the bushel price of corn.