103 



Two things are very apparent from this e^'perience. tt 1 , the inarl::c?t mas 

 buying grain with very huge discounts based on a very unreliable test, to 

 say tlie least. Grain companies mill argue tliat the test variances liiork 

 both ways. I think you mill find if you audited tfie grain exchange books 

 on the number of cars purchased without vomito:iin discounts, you will find 

 that it is a very small pc3?centage. ftlso, if you traced what the millers 

 paid for their purchases and mhere the grain went, you would find, in my 

 view, that all the grain went to the same place, whether it liad vcmiitonin 

 or not . 



The second conclusion I drew from this experience wn=i that, nlUinnqh thp 

 spot market quotes prices far t*l milling wheat, very few cars actually r,ell 

 at these levels. In the middle of June of 19V3, tlie spot market quit 

 quoting what range cars were selling for on the spot floor, instead only 

 quoting what *1 wlieat was selling for. On a lot of days, one car might 

 sell at the top« of the spot, but the other 99.9'/. sell at levels 

 considerably lower than that. It is my understanding that the millers base 

 their flour sales off of the top of the spot market. 1 find this current 

 situation very convenient for the millers. They can buy our wheat at cheap 

 prices, yet command a much higher price for their finished products. I 

 think the spot markets should be forced to shorn the mhole price range on 

 what cars are selling for on that day. 'The only way to be able to truly 

 market grain, is to knom what prices the market is willing to pay for the 

 differnt qualities being sold. 



Mike Trosen, Genera) Hanager 



h^^^yjM. 



James Valley F'ai-mers Elevator 

 Groton, South Dakota ri74iri 



