Milk-feed ratio spikes
After hovering around 3.0 for the last six months, the USDA announced the March milk-feed ratio at 3.21 on Thursday. Analysts say that conditions are favorable for milk production when the ratio is above 3.0. The USDA calculates the value by subtracting the feed price from the current milk price. The feed price is based on the typical dairy ration and the prices for corn, soybeans and alfalfa.