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Texas Agriculture Archive

March 1, 2002

MARKETING

By Bryce Myrick
Director, TFB Agricultural Marketing Education

This year may be different from other years. While Congress works to write a new farm bill, many commodities are sitting at stagnated low prices. Farmers who are thinking about planting 2002 rice, wheat, corn, soybeans, and cotton are apprehensive about commodity prices.

Agriculture producers need to be waiting and ready to market this year's crop. With low prices, most producers should be waiting to see if there is a spring rally in prices. Although there does not appear to be a rally in sight, things can change quickly. Producers also should be ready to make marketing decisions quickly. Any rally may disappear as fast as it comes. We do not want to come to fall harvest with low prices and look back and see where commodity prices were fairly good in the spring and we didn't do any marketing.

Our goal should be to market at least 50 pecent of our projected crop if the market gives us a spring rally.

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.

AUGUST - FEEDER CATTLE

Fundamentals: Feeder supply tightening.
Technical Analysis: Trend - Up / Resistance - 86.10 / Support 82.65

DECEMBER - COTTON

Fundamentals: How many U.S. acres will be planted?
Technical Analysis: Trend - Sideways / Resistance - 44.30 / Support - 40.60

JULY- KC WHEAT

Fundamentals: Waiting to set Australian production.
Technical Analysis: Trend - Down / Resistance - 3.07 / Support - 2.94

JUNE - LIVE CATTLE

Fundamentals: Choice beef demand better.
Technical Analysis: Trend - Up / Resistance - 71.10 / Support 69.40