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Texas Agriculture Archive

April 4, 2003

MARKETING

By Bryce Myrick
Director, TFB Agricultural Marketing Education

Demand for U.S. cotton is excellent, creating 200,000 plus bale exports nine of the last 10 weeks. While demand has been strong, the market price is going to be determined by this year's production from China, the United States, India, and Pakistan. If these four countries produce eight to 10 million bales above last year's production, the market will have a hard time maintaining these prices.

One of the things Texas Farm Bureau is trying to do is to help Texas producers generate more sales of Texas cotton to Mexico. In order to accomplish this, we are sponsoring a meeting in August to be held in the Valley that will bring in Mexico cotton mill buyers to meet with Texas cotton producers, gins, co-ops and merchants. At the current time, one company in Terron, Mexico is buying over 100,000 bales a month. If you have an interest in this type of meeting, give me a call at 254-715-5055.

December - Cotton

Fundamentals: Strong exports.
Technical Analysis: Trend - Up / Resistance - 61.00 / Support 57.50 (Closed @ 59.45)

June - Natural Gas

Fundamentals: The war will control oil prices.
Technical Analysis: Trend - Up / Resistance - 5.64 / Support - 5.13 (Closed @ 5.14)

August - Live Cattle

Fundamentals: Big spread between August Futures and $78.00 cash.
Technical Analysis: Trend - Sideways / Resistance - 68.00 / Support - 66.20 (Closed @ 66.90)

July - KC Wheat

Fundamentals: Weather will be determining factor.
Technical Analysis: Trend is Lower / Resistance - 3.35 / Support - Broke below support (Closed @ 3.06)