There were 2488 caks delivered against the Dec corn, I wish we had a better delivery system for Chicago SRW. Expect more volume in the Futures markets from the specs. The Board will want to accommodate as volume = $$$. Investors see Ag commodities as a very good value. Morgan Stanley said in an article that corn will not be short this year, but next year could really be in doubt. This is what we have been talking about the last few days. The US raised 2.6 BYN more bu of corn this year than last, and yet carryouts will only increase by about 1. Byn bu. The US has shipped the first 62 ton lot of beef to Russia in 4 years.

Iran claims to have sold 12 myn bu to India in the last 3 months. Iran is typically a net importer, so the news is a bit of a shock. China is auctioning off another 19.7 myn bu of corn to help fight/ stem inflation, and is targeted toward the chicken producers. Also overnight Japan bot 2 myn bu of Canadian/ Aussie. France is projecting a 3.4% in wheat acres. The IGC has world wheat production up 4%…here is a question I have: The USDA says US wheat acres are up 3-4%. The wheat used for seed was estimated at 81 myn bu in September which would be about a 3.8% increase. After last report it showed 88 myn bu used for seed which would be a 12.8% increase. If you based the seed used on irrigated acres you can get down to about 4.8% increase, but that would imply a production increase of about 624 myn bu!!! This is a huge factor when trying to guess what prices may do next summer. If all of the seed went into dryland with a 40 bpa average, that would imply about 6.8 myn acres increase or about 274 myn bu increase in production. 350 myn bu is the difference…equal to about Kansas or 1 ½ PNW wheat crops….

Futures are up strong this morning mostly on news from the fed lowering interest rates which should weaken the dollar, making exports even a bit more appealing. Where it is really hurting is on imports, especially oil, fertilizer, chemicals.

Don’t forget tomorrow morning we have our State teleconference marketing meeting. Our guest speaker will be Bud from Kalama Export. We will also be talking more about S&D’s….

***Didja Know: In 1982 a fella named Larry Walters tied 24 ballons to his lawn chair and armed with a BB gun, ascended to 16,000 feet….about 18% of US income is spent on transportation…1960’s M0untain Dew bottles featuring ‘hillbillies’ are worth about $5 a piece…Ketchup was originally sold in the 1830’s as a medicine….the finger prints of a Koala bear are very similar to humans…lemons contain more sugar than strawberries.

***All bids are subject to change, please call for CONFIRMATION of prices. All information in this letter is from sources deemed reliable, and is for informational purposes only***