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MARKETING
By Bryce Myrick
Director, TFB Agricultural Marketing Education
As we start 2005, the outlook for good program crop prices is not nearly as favorable as when we started 2004. Most row crop commodity prices are down 20-40 percent from January 2004. The main reason for the lower prices is near record production for these crops. Even though demand has been strong, world production keeps growing at a faster pace. One major item that has been in our favor is the weak dollar, as you see on the chart below. This lets us be competitive in the world export markets. A 20 percent increase in the dollars value, which is a goal of President Bush, would force us to lower our export commodity prices to stay competitive.
What we need to look for in 2005 is an opportunity to hedge or market our commodities at a favorable price. We may only get short term rallies in commodity prices, which will give us a window of opportunity. Producers probably can't wait until harvest to make marketing decisions in 2005.
If you would like to have a workshop in your county or have market questions, please contact Bryce Myrick at 254-751-2242 or 915-698-0355 or e-mail him bbmyrick@swconnect.com.
