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.