Electronic trading is expected to result in net prices which are more favorable to producer sellers and/or buyers of agricultural products than those generated in traditional trading systems. Lower transaction costs and reduction of market power imbalances account for the difference in net prices. Review of the evidence from actual electronic trading supports these hypotheses. The importance of balanced information availability and effective loss of power by one side of the market due to electronic trading suggests that the move to greater use of such systems must come from agricultural producers.