February 4, 2000

Many factors will determine crop prices in 2000. While we do not know the effects weather will have on prices, we can start looking at world supply and demand.

If the economy stays strong in the United States and grows in the Pacific Rim countries, demand for crops should be good. United States demand for cotton may weaken because of the decline in the U.S. textile industry.

One thing we know for sure is that supply will increase. More acreage will be planted around the world in 2000 than in 1999. While Canada and the United States will see little change, South America will increase planted acreage. Pakistan and the Soviet Union countries aim to increase acreage; China and India may cut back on cotton, but will increase grain acreage.

Our marketing goal for 2000 is to try to market our crops well before harvest. Any adverse weather should be used to our advantage. Watch October to December futures prices and be prepared to forward contract or hedge your crops.

June - Live Cattle
Fundamentals: Large number of light weight cattle in feed lots.
Technical Analysis: Trend—Neutral; Support—68.70; Resistance—70.60

December - Cotton
Fundamentals: China may cut production—price has moved up 10 percent in last two weeks.
Technical Analysis: Short-term Trend—Up; Support—58.90; Resistance—61.45

July - Rough Rice
Fundamentals: World supply still ahead of demand—no increase in price until something changes.
Technical Analysis: Trend—Neutral; Support—5.85; Resistance—6.47

September - Corn
Fundamentals: China may increase acreage—South America will increase acreage.
Technical Analysis: Short-term Trend—Up; Support—2.16; Resistance—2.45