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September 21, 2001
MARKETING
By Bryce Myrick
Director, TFB Agricultural Marketing Education
Although we have had lots of dry weather in our state, some winter wheat growing areas have received moisture. A good stand of winter wheat will put stocker calves in great demand.
One of the main things to consider is the March Feeder Contract is trading at 89.40 and the Fat Cattle are at $70.00. This is too big of a spread, and they need to come closer together. For this to happen, either fats have to go up, feeders go down, or a combination of both. For the 400-500 pound stocker buyer, that plans to run stockers on winter wheat, this larger price spread should have a major impact on how much he is willing to pay for stockers.
February 2002 Natural Gas prices have dropped dramatically in the last twelve months. For irrigated crop producers, hedging fuel cost for next summer may be very beneficial.
We would like to put on a hedging marketing workshop in your county. Please give us a call if we can assist you in any way.
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.
MARCH - FEEDER CATTLE
Fundamentals: Cheap
Grains; Good Demand.
Technical Analysis: Trend - Sideways;
Resistance - 90.20; Support - 88.80
FEBRUARY - NATURAL GAS
Fundamentals: Abundance
of gas; pipelines full.
Technical Analysis: Trend - Down;
Resistance - 3.85; Support - None
NOVEMBER - ROUGH RICE
Fundamentals: Big
Potential World Crop
Technical Analysis: Trend - Down;
Resistance - 4.80; Support - None
DECEMBER - KC WHEAT
Fundamentals: Lowest
Stock Level of all grains
Technical Analysis: Trend - Down; Resistance
- 3.13; Support - None
