THE EFFECTS OF THE MICRO-MARKET STRUCTURE ON ILLINOIS ELEVATOR SPATIAL CORN PRICE DIFFERENTIALS

Benjamin P. Wenzel, Lowell D. Hill and Philip Garcia

No 18927, 2000 Conference, April 17-18 2000, Chicago, Illinois from NCR-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management

Abstract: Corn price differentials among Illinois elevators can often exceed transportation costs. Using primary data, we examine the effects of micro-market structure variables on the differentials in bids prices offered by Illinois elevators. Our findings suggest the existence of a highly developed, responsive market of competing firms, operating in an industry that can be characterized by monopsonistic competition, and to some extent by seasonally induced market power. Local supply conditions, firm productive efficiency, and their operating practices influence price differentials. Further, firm type, final market destination of the grain, and period of the marketing year affect price differentials.

Keywords: Marketing (search for similar items in EconPapers)
Pages: 15
Date: 2000
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ncrtci:18927

DOI: 10.22004/ag.econ.18927

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