MARKETING GRAIN AT COUNTRY POINTS. 19 



When pressed for an explanation of these descrepancies, the market 

 reporter of this paper stated that the wholesaler in question, when 

 asked from time to time, had informed him over the telephone that 

 no changes had occurred. In rebuttal, the wholesaler stated that the 

 paper seldom inquired for price fluctuations and, when notified, 

 failed to insert proper corrections. It is difficult to determine the 

 precise responsibility in instances of this nature, but it undoubtedly 

 is true that the publication of incorrect quotations is a source of 

 annoyance both to the dealer and to the farmer. Dealers in large 

 cities and in country towns should insist that newspapers publish 

 correct quotations, with a specific heading stating the conditions 

 under which they are compiled and the date of compilation. 



FACTORS INFLUENCING PURCHASE PRICE. 



After considering the information obtained from all sources, the 

 buyer may decide to sell his grain for future delivery, although, as 

 previously stated, this practice is not to be commended. Such sales, 

 however, usually have no effect on the price paid to the producer for 

 immediate delivery, for when the dealer is ready to buy grain to fill 

 future contracts, competition usually compels him — when the price is 

 higher — to pay its true worth at that time regardless of the price at 

 which it was originally sold. If the market has declined, the dealer 

 feels that the risk assumed entitles him to any additional profit he 

 may obtain. 



When all grain offered is purchased at a flat rate, that is, when 

 one price is paid for all grain of one variety available, the average 

 grade of the grain received must be determined, and this grade is 

 taken into consideration when computing the selling price. 



After the dealer has ascertained to his own satisfaction the price 

 he will be able to obtain for the grain, a sufficient amount must be 

 deducted to cover the cost of operation of his plant, together with a 

 fair margin of profit. There are also many other aspects that the 

 dealer must consider in establishing prices. For example, the price 

 paid by his competitors must be taken into account, and he must be 

 aware at all times of the amount of storage space at his disposal and 

 the ability of the railroads to furnish cars when desired. 



If, for any reason, the railroads are unable to provide cars as 

 rapidly as needed, the shipper is confronted with the possibility 

 of unfavorable market fluctuations. If shipment can not be effected, 

 the resulting losses must be borne. However, it is usually possible 

 either to sell futures as a hedge against such grain until the time 

 when it can be moved, or to make a cash sale for shipment at a date 

 far enough in advance to enable the dealer to obtain cars. Account 

 must be taken of the condition and quality of the grain, proper con- 



