March 3, 2000

Why not take some of the risk out of your farming or ranching operation? Many times I hear producers say the market never gave them a chance to sell their commodities for a profit. For the last 30 days, many of our commodities have given producers that opportunity.

As I write this column, December cotton is above 62 cents. That is 13 cents to 14 cents above where the December 1999 contract went off the board. While we may see the price move up farther, it seems to make good sense to market 35 to 40 percent of your estimated production at 62 cents plus. Later you may have an opportunity to market 30-35 percent at 64 cents.

Corn has also given you an opportunity to sell the December Future Contract close to $2.50 a bushel.

If you look at the cattle chart, you will see an increase in price since July of 1999. The last two weeks have dropped about $1.50 a hundred, but doesn’t it make sense to hedge cattle on rallies? Call me if I can help you in any way.

COTTON
Fundamentals: Lower planted acreage in Far East.
Technical Analysis: Trend—Up/Resistance—Breaking Out Support—59.40

LIVE CATTLE
Fundamentals: Cheaper boxed beef/large number of cattle on feed
Technical Analysis: Trend—Short Term Down/Resistance—70.50/Support—68.50

CORN
Fundamentals: Lots of corn being fed
Technical Analysis: Trend—Sideways/Resistance—2.48 / Support—2.33