Agricultural pricesWallace, Henry A. (Henry Agard)
Science
Agricultural prices
Wallace, Henry A. (Henry Agard)
Agriculture -- Statistics; Farm produce; Prices
The products most traded in on the Board of Trade are wheat, corn and
oats, and to a lesser extent the cured hog products, rib sides, lard,
and mess pork. The smallest units traded in are 5,000 bushels of grain
and 50,000 pounds of provisions. In the case of the grains, the
contracts most commonly traded in are contracts for delivery in
December, May, July and September. In the case of the pork products, the
contracts most traded in are contracts for delivery in January, May,
July and September. Before the war, trading in December corn customarily
opened in the month of May. The price of December corn as quoted in May
was necessarily based on the supposition that the ensuing crop would be
a normal crop, neither greater nor less than the average. If there was
cold, wet weather in May or June, the price advanced. If the weather was
warm and rather dry, the price declined slightly. However, as a general
proposition, before the war, the price held practically steady during
the months of May and June. During July and August, however, corn values
on the Chicago market oscillated back and forth with rainfall and
drouth, registering the changes in marvelously delicate fashion.
Customarily, before the war, it took an average rainfall, in the seven
great corn states, of about one and a quarter inches during ten days, to
hold the price of December corn futures practically stationary. A
rainfall of as much as one and three-quarters inches in a ten-day period
during July and August would ordinarily depress the price by several
cents a bushel, whereas a ten-day period with no rainfall at all would
customarily advance the price by eight or nine cents a bushel or even
more if the temperature was high.
Anyone who studies these things is surprised at the accuracy with which
the market price before the war actually reflected crop conditions as
they changed from day to day. Since the war, it has been more difficult
to measure the price-making forces. Political conditions in Europe even
during the months of July and August often have had as much influence as
the weather in determining the price of corn.
Public-domain text, read in full here on John Shaqi.
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