Relationship between Two Price Quotes for Eggs
| Autor: | David A. Bessler, Lee F. Schrader |
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| Rok vydání: | 1980 |
| Předmět: | |
| Zdroj: | American Journal of Agricultural Economics. 62:766-771 |
| ISSN: | 1467-8276 0002-9092 |
| DOI: | 10.2307/1239778 |
| Popis: | Most transfers of shell eggs at all levels of the marketing channel from the production to the retail level are priced by formula based on published market quotations. Most pricing formulas in the U.S. east of the Rocky Mountains are based on prices quoted in Producers' Price-Current. West coast egg-pricing formulas most often use quotes by the U.S. Department of Agriculture's Poultry Market News. The pervasive use of formula-pricing results in a thinly traded cash market and focuses attention on the price quotes. The validity and accuracy of quotes are major concerns of the trade. The problems of egg pricing are documented by Rogers and Voss and by Schrader, Larzelere, Rogers and Forker. The desire on the part of the trade for a means to facilitate price discovery and price reporting for eggs motivated the establishment of Egg Clearinghouse, Inc. (ECI). ECI is a cash exchange trading gradable nest-run eggs, where trades are matched by computer with the product moving directly from seller to buyer once a trade has been completed. Trading on ECI has been thin, representing less than 0.5% of all eggs produced in 1978. Yet trades on ECI and Defense Personnel Support Center purchases represent the only transactions for which quality and delivery are clearly specified and for which prices are available to the public. Other transactions are known to participants and, to some extent, to Urner Barry or USDA reporters. Both Urner Barry and Market News report prices paid by retailers for cartoned eggs; however, these prices usually are determined by formula using a prior quotation. Much of the trading on ECI represents trading among grading and packing firms to correct shortterm imbalances. As such, these relatively few trades may represent the marginal price-making transactions. The quality specifications are such that only eggs suitable for cartoning for table use are acceptable for delivery in the gradable nest-run classes. |
| Databáze: | OpenAIRE |
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