Morrow County Grain Growers                             Pendleton Grain Growers

             Duane Disque or John Ripple                                      Jon Sperl

             1-800-452-7396 or 541-989-8221                           1-800-422-7611 or 541-276-7611

              or Dan Steiner 481-6614 (office), 571-3798 (cell)  graingrowers@centurytel.net

                                                            GOOD MORNING!!!

            Below are the best indicated market bids as of:   9:00  on      10/30/07

***NOTE: Corn values vary depending on delivery location PLEASE call for updates.

            Crude is down, $$ is up. Futures taking back some profit from yesterday. Yesterdays action marked the 10^th week in a row where we had at least 1 limit move in wheat as specs bought 5,000 corn and 4,000 wheat caks. MGEX posted a record volume (other exchanges will as well)…point is that even with higher maintenance costs/ volatility risk and margin calls, volume on the exchanges are increasing as specs/ investors turn to commodities. Electronic computer trading makes the trades a bit cheaper, and much quicker, with funds using pre-set limits to monitor trades across all commodities.

            Inspection report show that we shipped 43.8 myn bu of corn, and 31.2 myn bu of wheat last week, and very quietly new crop HRW posted new highs at $7.55+. New crop values continue to get propped up as world wheat situation begins to get ‘past’ extreme. We are almost at ‘dire’.

            Turkey issued a tender in addition to the wheat for 5.9 myn bu of corn, but the biggest news probably came out of India. India is now very short of wheat as they have held off buying, but are now bracing for a shortage of rice. Their rice consumption is about 1.-1.5 myn mt, and there simply is are no cheap alternatives. The market is expecting them to issue a tender for 1 myn mt of wheat anyway. FWIW world rice trade is about 40 myn mt, while wheat trade is about 110 myn mt. Part of the problem in India, according to their gov’t is that only about 10% of the seed planted is ‘healthy’. ABARE came out with a fresh estimate of the Aussie crop, not surprising 12.1 myn mt. Most trade analysts think it will likely fall between 10 and 11. They need about 7 for their own domestic use, so depending on what they want to do to ‘carry stocks’ forward would only have about 3-4 myn mt to sell. The Aussie gov’t is supporting a plan to replace the current single desk AWB with a new version of the single desk system….

***Didja Know: Food Stamps account for 66% of the Dept of Ag Budget? Who our top 5 WHEAT customers are from last year? Japan, Nigeria, Iraq, Mexico, Philippines. Interestingly, Egypt, Taiwan, South Korea and VENEZUELA (their gov’t HATES the US) were all grouped pretty close in 6^th place.

             Duane Disque or John Ripple                                      Jon Sperl

             1-800-452-7396 or 541-989-8221                           1-800-422-7611 or 541-276-7611

              or Dan Steiner 481-6614 (office), 571-3798 (cell)  graingrowers@centurytel.net

                                                            GOOD MORNING!!!

            Below are the best indicated market bids as of:   9:00  on      10/29/07

***NOTE: Corn values vary depending on delivery location PLEASE call for updates.

            Wheat futures posted the largest 1 week loss since 1996 last week, and so was called up 10-12 this morning. (currently up 28). Volatility will remain, and swings may very well be LARGER than what we have already seen. There was an article about a ‘veteran’ floor trader of 43 years in Chicago who remarked that after last week he was done trading wheat. One comment was “when you enter the market, you must be prepared for multiple limit moves AGAINST your position. The potential price objective needs to be about 4x greater than the risk”.

            Corn is also up again, and traders have returned to ‘everything’ commodity. NO one wants to be on the short side in this world market, as crude heads over $93. Soy oil hit a 32 year high last week. Traders are currently accepting the idea that PROBABLY somewhere near 7 myn acres will be switched from corn to beans…corn will have something to say about that…in about January/ February. Only ‘surprise’ in the COT was that the specs were 40 myn bu short in Chicago…that will likely get addressed this week. Good harvest weather has kept farmers in the fields and away from the markets, and corn basis is actually rising in the corn belt. Generally basis levels are about there lowest right now….so are harvest lows already in for corn? With very good carries reflected in on the board, remember that there is a thing called ‘slippage’. That is trader talk for what happens to the deferred bids as time rolls forward. For example: Nov corn $152, Dec $152, Jan 155, Feb 157. If by the time we get to January, the market is $152 it has ‘slipped’ $3. Which means that whoever is owner of that corn is out storage and interest, and assumed price risk. Today the markets are showing good carries, and with ethanol demand pretty stable, storing corn in the corn belt looks like a good way to add to the bottom line.

            Egypt tendered over the weekend, and ended up buying 6.9 myn bu of Russian wheat. SWW was offered at $10.84. World markets are still very active as Turkey is tendering for 11 myn bu and Morocco is also tendering for 9.5 myn bu. Harvest has started in the ‘northern’ regions of the ‘down under’. So far yields are disappointing…coming in at less than projected. They did receive some decent rains last week, but once again they are viewed as ‘too little, too late’.