May 5, 2000

For years, Texas Ag producers have been talking about value-added marketing. Now is the time for all Texas producers to say, "What can I do to increase the value of my commodities?" We are going to have to find ways we can move up the food chain toward retail prices.

Two weeks ago, I toured a flour mill in Rencon, NM. The mill is located 70 miles north of El Paso and 150 miles south of Albuquerque. This mill is owned by a group of southwest Kansas wheat farmers who bought the mill so they could add value to their wheat. The mill has been a very successful venture. Currently, they are selling over 100,000 pounds of flour every day with plans for expansion.

Agriculture alliances hold the future for many producers. If Kansas wheat farmers can sell flour in our state, I know Texas producers have limitless opportunities to add value to their commodities. Please call us if you want to learn more about alliances, or if you know of an alliance in your area and want to tell us about it.

Fundamentals: Market prices up, but without dry weather expect a pull back.
Technical Analysis: Trend—Up/Resistance—5.72/Support—5.15

Fundamentals: Planted acreage numbers continue to grow.
Technical Analysis: Trend—Down/Resistance—64.50/Support—54.00

Fundamentals: Good demand but Cattle on Feed numbers are up. Be cautious—Use caution.
Technical Analysis: Trend—Sideways/Resistance—70.90/Support—69.00