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d markets and prices in the United Kingdom and with the reciprocity agreement betweenCanada and the United States, from 1 to 1, there was considerable increase intwo-way ow of wheat and our across the . .Canadian border. During the AmericanCivil War of 1, considerable trade across the border was based on grades estab-lished by the Chicago Board of Trade. Although wheats grown on either side of the border were much the same, the economically stronger . . merchants usually had an advantage owing to their own grading system. In 1, the Province of Canada enacted legislation(Irvine, for grain grading and inspection, with the grades being dened along thelines established by the Chicago Board of Trade. The legislation dened six grades forwheat and allowed the Boards of Trade (in Quebec, Montreal, Toronto, Kingston, Hamil-ton, and London) to establish Boards of Examiners who would recommend the appoint-ment of inspectors, approve standard samples, and arbitrate disputes. 3 TYPES OF GRADING SYSTEMS Two types of grading systems (CGC, , are in use throughout the world: the fair average quality system and the numeric system. 4 Hulasare et al. 3.1 Fair Average Quality System In this system, samples are prepared to represent the average quality of the current crop and are distributed to purchasers with guarantees that shipments will be near the averagequality. Normally, the buyer arranges to have shipments sampled by an independent agency on its arrival at port or nal destination. The buyer who believes the shipment is not of fair average quality may use these samples as evidence for negotiations or forarbitration of the dispute. Only few countries use this system (CGC, . 3.2 Numeric System The numeric system separates grain into divisions of quality that are dened by grading factors. Each division is identied by grade name or number, and grain is bought and sold on the basis of these grades. Buyers obtain the specic quality desired by selectingthe grade. In some gradin