Oct., 1937] 



Eggs Under the Hammer 



21 



SALE PRICES VS. QUOTATIONS 

 Auction Premiums over Boston Quotations 



Producers have used Boston wholesale quotations as their price guide 

 for many years. But with auction prices widely quoted in newspapers 

 and over the radio they have become of great importance to poultrymen. 



In comparing auction prices with quotations in the following table 

 one must bear in mind that the grades are not quite the same, and that 

 one is weighted average, the other a top quotation. 



Percentage of sales 

 in which auction averages 

 (weighted) exceed top Boston 

 wholesale quotations 



1935 76% 



1936 83% 



*Same in one month and lower in one 



(See Fig. 6 for prices on every sale for one year) 



Explanation of Frequent Disparity in Auction Prices 

 and Boston Wholesale Quotations 



Some reasons for variations in auction prices and Boston wholesale 

 quotations follow: 



1. The auction price reports are on actual sales of eggs, while Boston 

 wholesale quotations are set by a committee on the Fruit and Prod- 

 uce Exchange (as referred to in this study). 



2. Auction prices reflect both wholesale and jobbing types of sales. 

 Separate wholesale and jobbing quotations are given in Boston, and 

 the jobbing quotation usually averages from 3 — 6 cents above whole- 

 sale quotations. 



3. The Boston wholesale quotation tends now to reflect top prices. 

 Formerly premiums over the market were more common. Auction 

 price reports usually give the extreme range in sale prices as well 

 as the range in prices for bulk of sales. In this study reference is 

 usually made to weighted average prices. 



4. The Boston grade on Nearby Specials is not quite the same as the 

 Kew Hampshire Special Grade. 



Nearby Specials (Boston) 

 Specials, Large (N. H.) 



Minimum weight for 



individual eggs 



rate of 24 oz. per doz. 



rate of 23 oz. per doz. 



Tolerance 



None 



(N.H. Law) 2 eggs per doz. 



(Auction) 10 eggs per case 



(if of next smaller size) 



5. The auction prices are more sensitive than Boston wholesale quota- 

 tions and thus move up or down more quickly. 



6 Condition of the market influenc^es prices paid as compared to quo- 

 tations. When prices are dropping and the supply of eggs is large 

 it is a "buyer's market" and purchasers often buy under quoted 

 prices. If eggs are short in supply and prices are moving up it is a 



