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 feeds 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 
