Changes in Spatial Grain Price Patterns in the United States And in the North Ce
Changes in Spatial Grain Price Patterns in the United States And in the North Ce
C Peter Schumaier
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3 corn prices at Chicago, Kansas City, Minneapolis, Omaha, and St. Louis, and on No. 2 corn prices at San Francisco (Figs. 13 and 14). Prices at the midwest markets have maintained a fairly small differential despite rising transportation costs, except that Minne- apolis differentials have gone from 3 to 4 cents under Chicago in the 1930's to 9 to 10 cents under since 1947 (Fig. 14). The San Francisco differential rose gradually from about 25 cents above Chicago in 1937 to 60 cents above in 195...5. In 1957, probably as a result of large western field crops, San Francisco corn prices approached Chicago prices for the first time since 1945. This differential appears to be tied to transportation in most years. It tends to rise as a percent of the Chicago price when prices are low, and to fall when prices rise. The differential between San Francisco and Chicago tends to be higher when corn crops are short in the western corn belt, as they were in 1955. This trend lends support to the argument that the differential J960J CHANGES IN SPATIAL GRAIN- PRICE PATTERNS 21 cJ* 25 OHIO V) MISSOURI CD s" 5 IOWA MINNESOTA /-.
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