September 1, 2000

MARKETING

By Bryce Myrick
Director, TFB Agricultural Marketing Education

As we go into fall harvest, the prices of rice, corn, wheat, and soybeans are at this year’s lows. Many things need to be considered about what we do with these crops. Do you have them hedged? Here are some ideas: 1) Would it be beneficial to store the crop? 2) Will these crop prices rebound before spring? 3) Should the crop be sold now and take the LDP?

These are questions the producer has to consider: 1) Will crops rebound by Spring? Historically, yes. 2) Would it be beneficial to store the crop? That depends on management information and if you have on-farm storage. 3) Should the crop be sold and take the LDP? This option could be done, and if the producer wanted to keep an interest in the crop, he could go into the futures or options market to benefit from any price increase the commodity has before spring. There are many options producers have when marketing their crops.

To set up workshops or for help with your hedging needs, call 254-751-2242 or 915-698-0355 or e-mail: bbmyrick@swconnect.com.

December - KC Wheat

Fundamentals: USDA stepping up foreign donations-exports rising. Technical Analysis: Trend-Sideways; Resistance-3.01; Support-2.87