related markets. The cost of shipping Hve weight cattle from Chicago to 

 Boston is about $2 per 100 lbs. Therefore, as prices at Chicago rise or fall, 

 the bidding price for similar grades of local cattle will tend to follow suit. 

 Recent heavy shipments of under-finished cattle from the western states 

 lowered the prices on utility and canner beef at Chicago. This was soon re- 

 flected in the prices dealers offered farmers in New England even though 

 there was no apparent change in local supply. Extraordinary supply condi- 

 tions on local markets may depress local prices without a similar decline in 

 western prices. Western buyers, however, are less likely to buy eastern 

 cattle, although they may if the price spread continues for any length of 

 time. 



An illustration of the close relationship between Chicago and Brighton 

 prices for cutter- and canner-grade of cattle is given in Figure 5 for the 

 period July 1, 1952, to Dec. 31, 1953. 



The Brighton Market 



The major market for cattle, hogs, and sheep in northern New England 

 is at Brighton, near Boston. Established around 1830, the Brighton market 

 was once the major price determining point in New England. Market re- 

 ports are issued weekly and provide up-state producers and dealers with a 

 guide as to what prices can be expected the following week. This takes no 

 account of price fluctuations during the week and is at best a somewhat in- 

 adequate measure for current transactions or expected prices. About 80 per- 

 cent of the sales on the market are by commission men or commission 

 houses so that the risk of price changes is carried b}^ dealers who buy cattle 

 from farmers or by farmers themselves if they have consigned direct. The 

 buyers at Brighton are packer representatives, jobbers, and a few small 

 slaughterers. 



The Brighton price is the major published sale price for livestock in 

 New England and as such is widely used as a guide by dealers in New 

 Hampshire. Supplementary news of Chicago prices is provided by the radio 

 and by Boston newspapers. This is available to producers and dealers alike 

 and should allow for competitive buying and selling. Most dealers use a 

 combination of Chicago and Brighton prices when buying and selling. 



Dealers aim at a flat-rate spread between the expected selling price and 

 the farm price aid of about $10 per cow, $3 per calf, $5 per hog, and 

 $2.50 per sheep to cover transportation or holding for sale. This spread will 

 be increased whenever it is possible to bargain for a lower farm price or the 

 market price takes an unexpected up-turn. For this reason dealers are no 

 doubt more conscious of price trends and probable future market prices than 

 dairy farmers selling cull cows and calves. Dealer incomes depend on the 

 accuracy with which they estimate the selling price, particularly if they pay 

 cash at the farm. If they sell on a commission basis, a percentage of sale 

 price is guaranteed. The commission rates charged after delivery to the 

 Brighton market are $1.30 for cows and $.55 for calves, hogs, and sheep 

 per head. 



Bargaining Position of Producers 



The choice of markets for an individual farmer in New Hampshire who 

 has slaughter cattle or replacement stock for sale is limited. If there is more 

 than one dealer buying in his territory he may compare bids. The newspaper 

 or radio will tell him the price at a central market. If he is anxious to sell 



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