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Texas
Agriculture Archive
December 5, 2003
MARKETINGBy Bryce Myrick
Director, TFB Agricultural Marketing Education
1. If we look back at where ag markets have been since 1997, most commodities have traded at profitable prices for producers sometime during the year. Most of the time these profitable prices are not at harvest, or when we need to sell. In 2004, I believe the cattle, hogs, cotton, rice, wheat, and bean markets will give producers a good opportunity to hedge profitable prices. The key to successful hedging is to have a marketing plan in effect in January. ADVICE: Do not get greedy.
2. Country-of-origin-labeling is the law, and mandatory reporting goes into effect September 30, 2004.
With this in mind, I suggest you do not buy any cattle that will go to the packer after Oct. 30, that do not have COOL documentation with the animal. Some of you will buy lightweight pasture calves and plan to sell them months before Sept. 30. Still get documentation, because the person that buys them from you may ask for it. ADVICE: If you do not understand this, give me a call.
KC - WHEAT
Fundamentals: World stock very low.
Technical Analysis: Trend - Up/ Resistance-3.72 / Support
3.50
NATURAL GAS - MAY
Technical Analysis: Trend - Sideways; Resistance - 4.96; Support - 4.55
COTTON - JULY
Technical Analysis: Trend - Up; Resistance - 80.50; Support - 68.50
FEEDER CATTLE - APRIL
Fundamentals: Demand strong for boxed beef
Technical Analysis: Trend - Up; Resistance - 90.75; Support
- 86.50
