The Idaho recorder. [volume] (Salmon City, Idaho) 1886-1927, 1920-06-04
ZCI4L. G/9HDER

HE inspection and grading OF grain
for sale on the exchanges of this
country is one Of the most in
teresting and important features
connected with the trade, and re-
garding 1t the general public has
practically no knowledge what
ever. AS a matter of fact, even
the average farmer who raises
wheat, corn, or oats, and who Is
therefore the person most con-
tie idea of how his grain Is handled
es terminal market. He probably
times why the price he receives
orn is lower than that received by a
armer who shipped and sold at the
YES itself into a question Of what
it upon it by the official inspectors
the state in which his market Is To-
wheat and corn have four or five
les, ranging from the best to the poor
course means quite a difference in
matter of grading is not as simple
In fact, in the case of some grains,
v, it is quite an intricate process.
in which the big terminal markets
hch as Chicago, Omaha. Minneapolis,
Fifty, has an official inspection depart
ery car of grain of whatever kind
Ped by the experts In these depart
II is offered for sale on the exchanges
Jain.
grain might mean little or nothing
Ter, but to the man in the trade it
Intended for immediate delivery. The
apartment of the Chicago Board of
Ftance, is very active and important
Pc the basis of operation for the en-
This will be better understood and
when it is stated that on the floor
nge more than 40OOOO,OOO bushels of
pght and sold each year. The scenes
the cash grain department of the
DE are just as interesting as those in
the general public hears little of this
board.
from enc end of the great exchange
ther are long rows of tables heaped
per bags containing samples of grain.
felers are rushing to and fro trans
business and shouting their wants. 1t
nstling crowd and the aisles between
e so crowded that passage between
difficult.
is in hurry. Hundreds of cars
n he disposed of within a couple Of
car of grain is sold by sample. These
|'aken from the cars on track in Chi
state grain inspection department,
|deo and tested. and then sent over
hse On each sample bag is marked
grain contained therein, its grade,
/ cohsignee and number Of the car.
Fsed on future" prices, sometimes
sometimes at a premium. depending
putty of the grain and upon market
fie Tor the mutual benefit of the pro-
Fsh grain dealer. The producer is hen.
y the cash grain dealer can offer him
'or MS property by using the future"
4 could If he operated on a flat-price
Is made possible by reason of the
Ivy TO hedge" his purchase in the
market. BY hedging" is meant that
ram Is bought in the country a guam
'ne amount purchased Is sold in the
the buyer has not previously con-
E's sale Thus the buyer is protected
loss IN the event of break in nricos
p"'h Is en- route to Chicago. and he
7 pay more to the farmer and work
nlaFSln of profit. He could not bid
nal price and expect to "hedge" his
! .! lhe time he Is notified that his
g.eu me market may be a couple of
IRON his quoted figure.
es the farmer the benefit of contin-
: market; whereas. If he had to de-
upon the demand from shippers and
-''e. HrerS, he would encounter fire.
.'''''S. The speculative buying takes
a 'iileS when the cash demand lags
uiore satisfactory trading conditions.
a a.', IS also shared by the cash grain
-''a'h 70 his hedging" protection. II
:, unexpected from this that the future
MI completely dominates cash grain
:" >A1h Is not the case. The specu-
'lt1lually watches the action of cash
!, 5aI In the demand or materially in
..S q the spot" or cash. grain Is
tied IN the pit.
- e'aih and inspection department,
- samples of grain for sale on the
Y irade, has the reputation of be-
e5'''eht OF its kind in the country.
lE.''eheS II In the matter of capacity.
handled more than 10000 cars
month. and its record for single
'pI.e 5 $50 cars, Of which 1.472 were
~ Is more difficult TO grade than
~ ~ as II requires the moisture test
!. ,SNea by the federal government.
1, ne grain inspection department in
rNs - deputy inSpecforS IN Grain