16 BULLETIN 1124, U. S. DEPARTMENT OF AGRICULTURE. 



the reports are more or less partial and are therefore not always 

 dependable. 



It is generally understood in what manner prices are determined 

 in the most important shipping markets, but the prices quoted in 

 newspapers in markets where no exchanges are located show at times 

 such wide variations that for practical purposes they are useless. 

 Little is known by the average dealer as to how they are arrived 

 at or what they represent. Much remains to be done to educate 

 buyers in this respect. A few of the principal difficulties leading to 

 these wide ranges are here pointed out. 



FACTORS CONTROLLING PRICES. 



Prices for wheat feeds are controlled largely by potential supplies 

 and production in surplus-producing sections. However, the avail- 

 ability of other feedstuffs which may be used as substitutes is an 

 important factor. It is not uncommon in a section where liberal 

 supplies of other feedstuffs are available to find prices of wheat 

 feeds quoted materially lower than in sections where supplies are 

 scant. This in spite of the fact that both sections may be the same 

 distance from production centers. Not infrequently the prices for 

 wheat feed^ quoted by one local newspaper differ materially from 

 those appearing in another newspaper published in the same city. 



The main reason for this is that when feeds are not actively traded 

 in the quotations published will be either those which prevailed at 

 the time the last sale was made or those which represent the idea of 

 a dealer regarding the price which he possibly may realize for one or 

 more cars. Some other dealer may quote another newspaper on the 

 basis on which he thinks wheat feeds may be bought, resulting at 

 times in a wide difference between the prices as published by the two 

 newspapers. 



In heavy consuming and producing centers, and in cities where 

 exchanges are located, the range between the prices quoted in the 

 various local publications is usually narrow. In Western States 

 and in Pacific Coast markets where exchanges are few the range 

 between prices quoted is often large. Even in such markets as Port- 

 land, Oreg., and Seattle, Wash., which have exchanges where bids 

 and offers for feedstuffs are made, wide variations in quotations 

 appear at times. Actual transactions take place privately in these 

 markets and the prices at which sales are consummated are usually 

 not made public. 



In most of the western markets similar conditions prevail. In the 

 absence of exchanges, bids and offers are made by telephone and 

 frequently meetings are held to reach an understanding on less-than- 

 carload prices. The quotations appearing in newspapers in these 

 markets are sometimes the actual prices obtained for one or more 

 lots, but often they are estimates reached after a careful consideration 

 of all circumstances by dealers. Many newspapers fail to show 

 whether prices quoted are per bag, per ton, or per carload. Most of 

 them, however, quote prices per bag as furnished by local retail 

 feed dealers. Sometimes western dealers who handle stuff for local 

 and neighboring country mills quote to newspapers a lower price 

 than that prevailing, while dealers who trade in stuffs shipped in 

 from the East often overstate the price, presumably to be able to 



