18 BULLETIN 558, U. S. DEPARTMENT OF AGRICULTUKE. 
Frequently premium prices are paid by exporters who need grain 
to fill out a cargo destined for shipment upon a certain date. Also, 
as noted in the foregoing illustration, early in the crop year, the first 
cars of new grain to arrive in the markets are frequently sold at a 
large premium over prices offered for similar grain to arrive several 
weeks later. These premium prices are often published without ex- 
planation as “cash prices.” Dealers forward representative samples 
of their grain to commission houses or other central market dealers 
early in the season and are advised that “if your grain were here to- 
day ” it would be worth a certain price. If the country dealer bases 
his purchasing price on such information he is quite likely to discover 
that these early premiums have disappeared by the time his grain 
arrives, with resultant financial loss to him. 
Seiustimes a knowledge of discounts is as important as a knowl- | 
edge of premiums. As a general rule, premiums are paid for grain 
of superior quality, while discounts are made for grain of “ off ” 
grade or inferior quality. When a large amount of high-grade 
grain is on the market usually little, if any, premium is received. 
Likewise if but little low-grade grain is on the market it may be dis- 
posed of at a slight discount under prevailing prices for good grain. 
If, however, a large amount of grain is of poor quality the dis- 
count is much more severe. Thus grain that under favorable cir- 
cumstances would sell for 2 or 3 cents discount under the standard 
grade may be sold at a discount of from 10 to 15 cents when a large 
amount of grain of the same quality is on the market. 
UNRELIABILITY OF PUBLISHED PRICE QUOTATIONS. 
Local market news, particularly in cities where there is no gen- 
eral market, is sometimes inaccurate. In one instance, in a city of 
65,000 inhabitants, under the general head “ Grain, hay, and straw 
(wholesale),” a paper published a mill’s price to farmers for wheat 
-and a jobber’s quotations to retailers and large consumers for corn, 
oats, hay, and mill feed. These latter prices were far from accurate, 
as the following parallel will indicate: 
As pub- As actually 
Commodity. lished. quoted. 
OORT ee a ee EB en ee et el bushel. . $0. 80 $0. 55 
ClARR: ceo chats. reenter ies = ok me eens eee) Pome diane . 38 . 46 
No. 1 timothy Wreby. lie Se et a eo ee Boe LOWE: ais 10. 00 13. 00 
Woe timothy hay. ci. ae ee ae Uae emcee doa: 10. 00 12. 00 
Glavenmixed Nay sa. fv os ep ie nee es ae nee do.ts. 10.00}. 11.00 
Uae es 2 oo Sah Te ee Se ne ee dat .3a 10. 00 15. 00 
Rime ED AT foes ceo as ol ee be eee ee di. <2. 24. 00 22. 00 
Srudned muridines -)...- ats oa ee ee dos dca) 28 Gn 25. 00 
Wbrre aia dlises: 22) 6025-5 ee eae eee is eee 28. 00 29. 00 
MPR EC ee LS os eo ee en ie eae ee do, | 30. 00 27. 00 
