i 4 2 THE WHEAT INDUSTRY 



depends for its success on lowering of prices and 

 the group of men conducting it are known as 

 bears. All this suggests, as is actually the case, 

 that much more wheat is bought and sold than is 

 ever raised. A large percentage of the sales 

 conducted by the grain exchange is only on paper. 

 Very little actual wheat changes hands. Yet the 

 relation of the exchange to the markets is close 

 since any of the deals which are made could be 

 carried out should the seller prefer to dispose of 

 the real commodity. 



Conditions which affect the price of wheat are 

 so numerous that dealing in wheat futures is as 

 uncertain as that of stocks and bonds. Since the 

 uncertainty has its fascination for many business 

 men, there are times in the wheat pit of the 

 Chicago Board of Trade which are as exciting as 

 those in the Stock Exchange of New York City. 



QUESTIONS AND EXERCISES 



1. Why is exchange of wheat for flour not practiced 

 much in the great wheat-producing regions ? 



2. What conditions in a region favor the development 

 of numerous small mills ? 



3. Explain how short distances to market favor the sell- 

 ing of wheat direct from the thresher. 



4. What difficulties have been experienced by farmers 

 who have tried shipping direct to distant markets ? 



5. How is grain graded for market purposes ? 



6. What are the market grades of wheat ? 



