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Quick marketing notes for short and long term decisions.
•Are Feeder Cattle too high? Although beef demand is strong, 700 pound steers going into the feedlot today look vulnerable.
•Hard Red Winter Wheat stocks look extremely low. Prices seem to be set for a Fall rally.
•Since the first of the year, December Cotton futures have fallen from 70 cents to 53 cents. Remember, cotton futures always go too high and too low.
•Milk Futures have rallied 40 percent since the first of the year.
•For several years Brazil has wanted to build a railroad from the southern ports to the northern Mato Grasso, but they have never been able to raise the estimated $1.3 billion cost. Now they are working on an agreement for China to fund the 800-mile project. China knows that Brazil can still double or triple their soybean production. For every 50 cents a bushel drop in bean prices, China would save $385 million.
By Bryce Myrick
Director, TFB Agricultural
Marketing Education
I am always available to answer your market or hedging questions. Please call me at 254-751-2242 or 915-698-0355 or e-mail: bbmyrick@swconnect.com.
WEEKLY ROUGH RICE
COTTON - DECEMBER
Fundamentals:
U.S. and Global carryover is increasing
Technical
Analysis: Trend - Down; Resistance - 58.50; Support - none
Fundamentals: Demand Good
Technical
Analysis: Trend - Up; Resistance - 11.20; Support - 7.70
Closed at 2.10 1/2
SOYBEANS - SEPTEMBER
FEEDER CATTLE - SEPTEMBER
Fundamentals: Very strong demand
Technical
Analysis: Trend - Up; Resistance - none; Support - 1.05
Fundamentals: Two key factors - Weather and will China be a buyer
Technical Analysis:
Trend - Down; Resistance - 7.60; Support - 6.90
