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feed ratio

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Financial Dictionary

Feed Ratio

A ratio used in futures markets to express the profit margin associated with the feeding and selling of animals.

Investopedia Commentary

A feed ratio helps to identify the profitability of raising animals used as commodities for futures contracts. It takes the price of the grain required to feed the animals divided by the market price of the animals at sale. An example would be the corn-hog ratio.

Related Links

Futures Fundamentals

See also: Commodity, Futures Market

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