- 3 - 



UO cents a pound, the lowest price since World 

 War II. 



Low quality was an important reason for 

 lower prices for the cigarette portion of the 

 195U crop. Manufacturers regarded it as one of 

 the poorest crops on record for cigarette use. 2/ 



SEASONAL PRICE PATTERN HEAR MOFa-IAL 



Changes in daily average prices paid for 

 Marylard tobacco are to a considerable extent the 

 result of variations in quality of leaf offered 

 for sale. However, prices of tobacco of the same 

 quality, as measured by Federal grades, do fluc- 

 ttiate frcsn day to day. There is little price 

 variation in the very top grades and in the lo\7- 

 est grades, but the medium grades, which sold at 

 20 to 60 cents a pound in 1955 > fluct^^ate consid- 

 erably. 



Figure 3.- 



-Care in packing the basket can pay 

 off at the auction. 



There is also a rather definite seasonal 

 pattern in the average prices of Maryland to- 

 bacco, 3/ This is in -part the result of changes 



in q^^ality as the season progresses, more high-quality tobacco coming to market in the first 

 weeks, (h?ade prices decline to a lesser extent during the latter part of the season. Prices 

 during the 1955 season were highest during the first couple of ireeks, then weakened for the rest 

 of the season. The decline during the last 2 weeks was rather sharp. Prices were higher on most 

 Mondays than on other days during the week. These price movements did not differ greatly from 

 the normal pattern. A clear difference frcm normal, however, appeared in the daily fluctuations 

 in a number of the medium-priced grades, which were much wider than in other recent seasons, 



POOR SORTING MEANS LESS MONEY 



One opportunity for making a profit on resales is offered by poorly prepared baskets of 

 tobacco, which result from the failure of growers to sort and pack their crops properly. The 

 manner in which the grower prepares his tobacco for sale influences the price he receives. 

 Poorly prepared baskets, if purchased by the packers, must be sorted into different packer grades 

 before being placed in the hogsheads for storage. If they are purchased by a warehouseman or 

 speculator, the buyers rework the baskets, making each one more uniform and more attractive in 

 appearance. 



Table 3. — Price and Vcilue of a lot of tobacco when originally offered ar«l when re-sorted 



Grade 



Weight 



: Price : 



Value 



BhR 



Pounds 

 ', 182 



Cents per pound 

 16 (rejected bid) 



Del 1 a,rs 

 29.12 













Sale when re-sorted 





1 



BliF 



BI4R 



68 



68 



! 18 



! 22 



69 

 16 

 29 

 29 



U6.92 

 10.88 



CUV 



X14D...., 



5.22 

 6.38 



Average 



! 39.U3 



Total 



! 176 





69.10 



Gain 



! - 6 





l;0,28 



Source: Tobacco Division, AMS. 



2/ The Enquirer-Gazette, Upper Marlboro, August 5* 1955* p. 1. 

 3/ MarylaiKi Agricultural aq)eriment Station Bvil. U5l, p. 5U. 



