Excerpts from the report: Since World War II the price of butter has tended to fluctuate erratically when it was not being actively supported by Government purchases. It was found in this study that, in general, relatively little of the day-to-day changes in price could be associated with published indicators of short-time changes in supply and demand. Despite the failure to find strong measurable relationships between daily prices and other market statistics, major receivers of butter and others familiar with the market say that the butter market is very sensitive to changing supply and demand situations. Close observation of major price movements indicated that this was true, but that price adjustments were excessive and undependable relative to changes in supply and demand, particularly when supplies were short. This study examined the nature of fluctuations in butter prices at Chicago during 1947, 1948, 1951, and January through March 1952. The fluctuations were evaluated as to their reasonableness in terms of short-time changes in supply and demand, and the extent to which short-time changes in price could be explained by changes in supply and demand factors was determined statistically. The relationship between price and 20 supply-demand factors was studied for 10 marketing seasons encompassing 811 trading days, and detailed qualitative analysis was made of factors affecting price during certain periods in which price was consistently moving in one direction.