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      1/11/08

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

            Big report day, and there seemed to be a bit of something for everyone! Traders will be busy digesting the news over the next few days, but all in all the report was decidedly BULLISH. Lets start with the S&D’s: Corn production was cut 94 myn bu, Feed/ Residual was INCREASED by 300 myn bu, food use was taken down by 45 myn bu. NET NET is that corn carryouts shrunk 360 myn bu with the stroke of a pen. What does it mean: Let me put it like this: In 2007 the US harvested by far and away the largest corn crop in our history, by about 2.4 byn bu! That is a HUGE increase, but due to increased demand/ usage, corn inventories were only expected to increase 400 myn bu! So after today’s adjustments we just barely broke even / met the budget with last years HUGE corn crop. Corn can NOT afford to lose many acres this spring: result; corn up the limit. WHEATS: They did not make any large S&D adjustments, real excitement came in the plantings report. For the most part they just tweaked some of the S&D numbers.

            Plantings report: WOW! First of all the USDA is now estimating 86 myn bu used for seed, but the report shows only 46 myn acres planted. Simple math says that is nearly 2 bpa seeding rate! Something is out of whack. The 46 myn acres is AT LEAST 2 myn FEWER acres than the AVERAGE trade guesstimate, and is only 1.5 myn acres bigger than last year…this is EXTREMELY bullish. A little closer examination and you can see that the majority of acre increases happened in places like Arizona +67%, Alabama +42%, Delaware +40%, Florida +38%, Iowa +43%. MOST all major wheat producing states except Montana showed a DECREASE: Kansas –5%, Colorado –4%, Nebraska –5%, Okie –3%, Texas –3%. Washington did show a 2% increase and Oregon an 8%, Idaho up 11%…SWW premiums vs. other classes could feel pressure next fall. So it looks like we will end the week on a very positive note with new crop wheat futures in Chic, KC and MPLS all up the limit. Beans are up 50, Corn is up 20! Enjoy the ride!

***Didja Know: “Things are more like they are now, than ever before” Gerald Ford…Tornadoes are almost unique to the US…they occur far more often here than anywhere else in the world. All commercial coffee is produced within 1000 miles of the equator..

                                                            HAVE A GREAT WEEKEND               

***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**