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      12/3/07

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

            Futures are called higher in corn and beans, mixed in wheat. Corn spent most of the day up yesterday, sometimes as much as .08 before closing with only minimal gains. Wheat was supposed to be up on strong shipments/ continued dry in critical parts of the world, but specs evidently wanted to capture some profit from a fast moving market. At this stage it should be viewed only as a temporary setback…this market still needs to curb demand, and higher prices is the most likely cure. Last week at one of the breakout sessions, John Oades (US Wheat) presented some of the best/ most timely information I have seen at one of these meetings. One of the more startling numbers was what has happened with the exchange rates. We have been talking about how the dollar has been weak, but he really put it in perspective, consider: 5 years ago; US $ = $1.775 Aussie, today $1.1175. 5 years ago 1 US $ would buy $1.58 Canadian, today would only buy .96. Those are 2 of the more extreme cases, but point was made. So while it does help exports, it also hurts imports (fertilizer). As the US gets “greener” and we have more and more regulations, more of the fertilizers/ chemicals and even refined petrol products come from overseas/ less regulated areas…and that costs us big $$$. It does distort things a bit though as the USDA will report an increased AG trade surplus of $15.5 byn, double of the August estimate. Mexico booked 21.4 myn bu of corn last night.

            ABARE has increased its estimate of the 2007 crop to 12.7 myn mt, up about .6 from the last October report. Barley numbers are also a bit more shiny, but drought has definitely left its mark on Aussie this year. The production will be down all across the ‘down under’, but WA will produce nearly ½ of the Aussie production. Canada’s Agrium (world’s 3^rd largest producer of N) will buy UAP for a cool $2.65 byn. This will make it North America’s largest Ag retailer with a market share of about 15%.

            The consolidation in the Ethanol business continues as E3, a plant in Mead, Neb seeks chapter 11. This was a ‘closed loop’ system, relying on cattle manure to power the plant. The EU filed a complaint that ‘subsidized’ US bio-diesel is displacing EU products in a process known as ‘splash ‘n dash’. This is where bio-diesel is produced somewhere else (say Maylaysia), hauled to the US, blended with diesel, gets tax credit, and then is shipped to the EU.

***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**