Return to TFB Main Page
Return to Current Edition
Texas Agriculture Archive

June 6, 2003

MARKETING
 

By Bryce Myrick
Director, TFB Agricultural Marketing Education

Indecisiveness is what many producers are facing in Texas agriculture. There is not a lot of clear direction about where commodity prices will be in three, six, nine months.

Producers face many questions: 1) future condition of the economy; 2) Country of Origin Labeling (COOL); 3) (SARS); 4) world trade; 5) BSE in Canada, and 6) weather. While we can never predict the weather, always remember it is still a big factor. Western China is now in a drought. Our cattle ranches in western states are cutting cow numbers because of the continuing drought. Also, weather in July and August could change grains and cotton prices dramatically. There is also good news. The dollar continues to get cheaper, which will help already strong exports in most U.S. commodities. Remember that indecisiveness in agriculture markets usually causes prices to drift. When prices drift, they typically move lower. Rallies and sell-offs could be short lived. If I can help you, please give me a call.
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.
July–K C Wheat
Fundamentals: Exports have been good.
Technical Analysis: Trend –Sideways; Resistance–3.50; Support–2.97

August – Live Cattle

Fundamentals: Demand excellent
Technical Analysis: Trend–Up; Resistance–69.80; Support–67.70

December - Cotton

Fundamentals: Weak dollar will help exports.
Technical Analysis: Trend–Down; Resistance–62.00; Support–54.20

September – Corn

Fundamentals: Drought in China will affect price. Technical Analysis: Trend–Sideways; Resistance–2.52; Support–2.31