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Texas
Agriculture Archive
May 3, 2002
MARKETING
By Bryce Myrick
Director, TFB Agricultural Marketing Education
What will the price of good pairs be in October? The answer may lie in the price of Fat Cattle.
Today we have a weak $65 fat market and an October live price of $64.55. This is down $7 to $8 in the last 45 days. Currently, cows and pairs prices have held together mainly because of summer pasture buying.
Many factors are going to enter into the price of October Fat Cattle. It appears the price of corn will continue to be advantageous for the cattle feeder. While hog inventory has increased, the price of lean hogs has dropped nearly 20 percent lately. Increased poultry continues to be a problem for beef prices. Along with increased numbers of cattle in the yard, now we have had a mad cow scare.
In conclusion, without a fall rally in fat cattle prices, good quality pairs are certain to be $100 to $150 lower this fall.
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 - Lean Hogs
Fundamentals: Large Number U.S. and Worldwide
Technical Analysis: Trend - Down; Resistance - 55.00;
Support - 51.60
September - Corn
Fundamentals: Up to 3 million increased planting
acres
Technical Analysis: Trend - Down; Resistance - 2.21; Support
- 2.08
October - Live Cattle
Fundamentals: Good Feed Prices-Cheap Hogs- "Chicken"
Technical Analysis: Trend - Down; Resistance - 66.70;
Support - None
November - Soybeans
Fundamentals: Argentina's problems - China to buy
U.S. beans
Technical Analysis: Trend - Up; Resistance - 4.20; Support
- 4.51
