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Texas Agriculture Archive

January 17, 2003

By Bryce Myrick
Director, TFB Agricultural Marketing Education

As we start the new year, it is important to have a 2003 commodity marketing plan. One of the first questions that has to be addressed is "What is the Profitability Outlook for 2003?"

When looking at the out-month futures—cattle, wheat, and beans appear positive; cotton has positive possibilities; rice and corn are weak. Using the futures markets to hedge can give you good protection against lower prices. A good marketing plan helps make production decisions. Sometimes we need to change crops. Wheat may bring a better return than corn. How to value water and when to contract fuel costs are considerations that need answers. For livestock producers, changing your breeding program may be beneficial. Some beef producers may need to consider taking calves all the way through the feedlot. A high quality steer sold on the grid may yield your best return.

If you need help developing a marketing plan or marketing your commodities, please give me a call at 254-715-5055.

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 COTTON

Fundamentals: Exports okay, Domestic Consumption weak
Technical Analysis: Trend - Up / Resistance - 58.00 / Support - 54.20

MAY FEEDER CATTLE

Fundamentals: Strong Fat Prices, Lower Numbers
Technical Analysis: Trend - Up / Resistance - 83.80 / Support - 81.50

JULY K C WHEAT

Fundamentals: January 10 Acreage Report will give direction.
Technical Analysis: Trend - Down / Resistance - 3.65 / Support - 3.25

SEPTEMBER CORN

Fundamentals: Weak Exports
Technical Analysis: Trend - Sideways / Resistance - 2.45 / Support - 2.39