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      12/26/07

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

            Korea booked 10.1 myn bu of corn for June. Very interesting to see large bookings into the deferreds this early. Futures are having a BIG day in fairly light trade. Corn is up 8-10, beans are up 35, wheats are up 10-15! Russia sold 16.5 myn bu of wheat into the domestic markets to ‘cool’ prices and fight inflation. Egypt’s GASC and India both cancelled their tenders saying prices were too high. Well if they were too high before, they sure won’t like the direction that they are headed. There seems to plenty of SWW interest STILL.

            The UN released a report saying that up to 40 countries will be facing food shortages as prices climb. Food prices across the board are up nearly 25% in most countries. One of the major drivers is the growth/ demand in China/ India. For example in 1985 average meat consumption in China was 20kg, today it is over 50kg. It takes a lot of grain to produce that meat! According to the FAO, the amount of corn used for biofuel production in the US will double to 110 million tonnes by 2016. In Europe, the amount of wheat devoted to biofuel will rise twelvefold to 18 million tonnes by the same date. China is experimenting with different rice varieties in “high salt” soils to try desperately to increase cereal production. Aussie has some of the same problems with ‘high saline’ soils.

Have a VERY Merry Christmas and Happy New Year!!!!!