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Thursday, January 31

PGG MARKET REPORT

by PGG Country on Thu 31 Jan 2008 09:29 AM PST

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 (work), 571-3798 (cell) graingrowers@centurytel.net

GOOD MORNING!!

Below are the best indications available as of:

9:00

1/31/08

SWW

SRW

DNS

HRW

Barley

Corn

Month

Portland

Chicago

Portland

Basis

Portland

Basis

Portland

Cash Px

Basis

February

14.48

2.55

11.07

1.38

256

196

March

13.25

14.51

2.58

11.10

1.40

257

April

13.25

14.55

2.62

11.13

1.45

258

May

13.25

9.29 CKW

14.59

2.66

11.17

1.50

258

June

1.50

JULY

8.87

8.52 CNW

11.48

.65 N

9.77

.55 N

AUGUST

8.85

8.60 CUW

10.82

90 U

9.78

.50 U

O N D

+.04/ mo

CZW

192

LDP's

-11.88

-10.53

-6.26

-3.79

-2.63

***Club premium: .00/ bu.

-.02/ 1/4

-.05/ 1/2

***NOTE: Corn bids vary depending on point of delivery. Please Call for Updates.
Futures called mixed to open. The fundamentals are still quite bullish, but there is a strong sentiment from the specs toward taking profits/ consolidating. But with the stock markets acting so "twitchy", the specs are far from stable. Demand seems to seep in almost as soon as the markets show signs of weakness. There are more places opening up wheat exports like Argie and the Ukraine, but quality/ quantity/ varieties are limited. Right now its all about "just making through to harvest", which is ok as long as the new harvest doesn’t disappoint. The RFA (Renewable Fuels Assoc) says that the .54/ gallon import tariff is still needed to help support the domestic ethanol industry. Sec. Of Energy Bodman says that the domestic ethanol industry is strong enough to stand on its own, and the .54/ gallon now is just a subsidy for the ethanol industry.

Sales numbers for the week were again quite bullish. Corn was expected to land from 39-55 myn bu…but the actual was 74 myn bu. Basis levels for corn on the interior remain firm indicating that selling is evenly matched to demand. In wheat, traders were hoping for 14.7-22 myn bu, and we got hit with a 18.7…which is still VERY STRONG. Breakdown was: 7.3 HRW, 5 DNS, 3.9 SWW and 2.6 SRW. A look at the sales slips show LOTS and LOTS of small lots. Corn basis on the interior of the US remains firm indicating a well matched balance between sales/ demand.

With all that’s happening in the futures markets and the SWW markets, if you are still holding SWW perhaps the best thing at this stage is to exercise patience, and see if we can get some normality to return to the markets.

***Didja Know: There are about 2.2 myn weddings/ year in the US…that’s over 6,000/ day. Over $1 byn in Chocolate is bot for valentines day (75% of it is by men).

***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***

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Wednesday, January 30

PGG MARKET REPORT

by PGG Country on Wed 30 Jan 2008 10:06 AM PST

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 (work), 571-3798 (cell) graingrowers@centurytel.net

GOOD MORNING!!

Below are the best indications available as of:

9:00

1/30/08

SWW

SRW

DNS

HRW

Barley

Corn

Month

Portland

Chicago

Portland

Basis

Portland

Basis

Portland

Cash Px

Basis

February

13.50

14.53

2.39

10.76

1.38

265

195

March

13.50

14.57

2.43

10.78

1.40

267

April

13.50

14.61

2.47

10.83

1.45

269

May

13.50

9.37 CKW

14.61

2.47

10.88

1.50

270

June

1.50

JULY

9.15

8.63 CNW

11.80

.65 N

9.93

.55 N

AUGUST

9.05

8.71 CUW

11.15

90 U

9.95

.50 U

O N D

+.04/ mo

CZW

192

LDP's

-12.01

-10.70

-6.50

-3.78

-2.63

***Club premium: .00/ bu.

-.02/ 1/4

-.05/ 1/2

***NOTE: Corn bids vary depending on point of delivery. Please Call for Updates.
Only one exporter submitted bids for SWW. They seem a bit low, but at least it’s a bid. With more than 5 months till combines hit the fields in earnest in the PNW, the chances that the market will need to buy wheat is excellent. Today I would advise patience on old crop. New crop still deserves consideration. US crop scores still are not rated very high or even close to last years scores. Futures are getting pounded again this morning. KC is down 22-30, Chicago is down 20, Mpls which was expected to be up the limit is instead down the limit. It is quite amazing that even when you expect wild volatility that we might consider a "calm" market is one that does not limit one way or the other during the day!!!

Argie will reopens exports on 2/15. Jordan postponed their tender till 2/5. Brazil actually needs the rains to quit. They are nearly at the point where rain will start to hurt yield/ quality on their beans. Aussie continues to get wet…and world wide (other than the US) world wheat conditions are better than average. Even with record tight supplies, one has to ask where wheat prices might be if the world produced 1.4 + byn bu more in 2008 than 2007? Where might wheat prices be on Sept. 15? Dec 15?

KCBT says that they are not for sale, but that if someone (CME) were to take a run at them (buy em out), they would listen. Rumor mill has the CME targeting the KCBT. As we see more and more consolidation in the financials you have to ask…is it good for grain? The thing we need to watch is to see what the relationship between the cash markets and whatever becomes of our futures markets.

***Didja Know: 50 years ago the average US household spent about 1/3 of take home pay on food, vs. about 15% average today. The ‘Milky Way’ is about 100,000 light years in diameter, and about 10,000 light years thick

***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***

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Tuesday, January 29

PGG MARKET REPORT

by PGG Country on Tue 29 Jan 2008 09:38 AM PST

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 1/29/08

	SWW	SRW	DNS		HRW		Barley	Corn
Month	Portland	*Chicago*	Portland	Basis	Portland	Basis	Portland	Cash Px	Basis
January			14.49	2.30 K	11.24	1.30	265	195
February			14.53	2.34 K	11.29	1.35	267
March		*9.68 CHW*	14.57	2.38 K	11.34	1.40	269
April			14.61	2.42 K	11.39	1.45	270
May		*9.82 CKW*		2.37 K	11.44	1.50
JULY	9.08	*9.09 CNW*	11.95	.65 N	10.11	.60	200	192
*AUGUST*	9.07	*9.16 CUW*	11.70	1.00 U	10.12	.50
O N D ‘08	*+.04/ mo*	*9.19 CZW*
*LDP's*	-12.34		-10.40		-6.26		-3.39	-2.58
***Club premium: .05/ bu.				*-2/ 1/4*	-7/ ½

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

Early call was for everything to be up following energies, metals, equities and lower dollar. Initially the futures roared out of the gate with wheats up the limit, but ***UPDATE***things have turned ugly in the wheat pits. Early limits up and now gone to limits down. No SWW bids from Portland. Currently no SWW customers, and certainly NO way to hedge purchases. Exporters feel the safest place right now is on the sideline and let things settle down. Taiwan is tendering tonight for 3 myn bu, Jordan, Paki, Tunisia and Morocco are all in as well.

Runup in corn has hurt Tyson’s biz as they reported 4^th quarter profits down 40%. They are talking with COFCO the largest Chinese foods/ oils importer/ exporter. Goal is to grow pork exports. We have had trouble shipping the Chinese corn, but perhaps we can ship them corn through pork. The Chinese have had numerous disease issues, and pork demand has been extremely strong.

Last July the CME (Chicago Mercantile Exchange) merged with the CBOT creating a new CME. Now the CME is in talks to merge with the NYMEX. The new exchange would account for 95% of US volume in futures/ options and handle everything from livestock, currencies, T-Bills, Stock Indexes, Fuels etc.

Brazil is will likely drop their wheat import duty to encourage more wheat imports. With old crop stocks of wheat incredibly tight everywhere it may seem a little late, but since they get the vast majority of their wheat from Argie, and Argie is just now considering opening wheat exports again, it may work out very well for them.

***Didja Know: 80% of all US purchases are done on credit? An average of 200 million credit cards are used daily in the US? Americans charged over $480 byn in 1990 $1 myn/ minute….There are 3 tracks on the magnetic strip. The first holds your name, expiration date, card type. The second holds account number, start date etc. and the third is for ATM’s.

***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**

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Monday, January 28

PGG MARKET REPORT

by PGG Country on Mon 28 Jan 2008 09:30 AM PST

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 1/28/08

	SWW	SRW	DNS		HRW		Barley	Corn
Month	Portland	*Chicago*	Portland	Basis	Portland	Basis	Portland	Cash Px	Basis
January	15.65		14.55	2.25 K	11.30	1.30	265	197
February	15.80		14.61	2.29 K	11.35	1.35	267
March	15.85	*9.50 CHW*	14.65	2.33 K	11.40	1.40	269
April	15.85		14.69	2.37 K	11.45	1.45	270
May	15.90	*9.67 CKW*	14.69	2.37 K	11.50	1.50
JULY	9.40	*8.91 CNW*	12.21	.65 N	10.11	.60	200	195
*AUGUST*	9.28	*9.03 CUW*