# Producer price differentials and why they may be negative | Ag Proud

> An explainer on dairy producer price differentials notes that PPDs were negative in all federal orders in November 2019, averaging negative $2.19 per cwt. The article describes how the PPD is calculated and why it can turn positive or negative.

- Date: 2020-02-24 · published 2020-02-24T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/54596-producer-price-differentials-and-why-they-may-be-negative-ag-proud
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Negative PPDs lower producer milk checks, which can squeeze dairy farm budgets and feed purchasing.

## Read by commodity

- MILK: bearish ▼

## Sources

- agproud.com: https://www.agproud.com/articles/36968-producer-price-differentials-and-why-they-may-be-negative

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.