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      2/15/08

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

            Foreign buyers are still booking US corn. Although last weeks sales were a bit disappointing, tender lineup looks to remain strong. Index funds bot more than 7,000 corn caks yesterday. Where does corn rationing start? So far price hasn’t been much of issue, supplies have more or less just dried up, and we end up with a pretty ill-liquid market. Egypt was in and booked 4.2 myn bu of US SRW and also bot 4.4 myn bu of Kazakhstani wheat. TOS is nearby. According to the latest S&D’s, SRW will end the year with the tightest carryouts of any class of wheat (est. @ 32 myn bu, but only 7% stocks to use ratio). Aussie has indicated that they will NOT participate in upcoming Iraqi tender. EU ministers will meet next week to discuss approval of 4 types of GMO corn, 1 variety of GMO potato. By EU law, if they are unable to agree, by default these will be APPROVED. Also yesterday the Strategie Grains from EU has projected a 12.4 myn mt surplus of wheat for 2008 available for export, which basically amounts to last years losses of about 300 myn bu plus this years increased plantings. Russian Ag minister said that they expect to ship about 15 myn mt by the end of this crop year (even with their 40% export tax). We knew somewhere down the road that Russia had the ability to eventually enter/ compete for export business, sounds as though they have arrived. One other item; although Argie has lifted export restrictions on wheat, they do not become effective till 3/1.

            ABA, American Bakers Assoc has asked the USDA to step in with some sort of price controls (read here: LIMIT EXPORTS). Spokesman for USDA (Keith Williams) said it ain’t even up for consideration! This is how the market should work. The last signal we need to send to our customers is that their wheat supply may be in jeopardy, especially by political pressure. Let the market decide!

            With additional expanded limits Mpls could trade up to $1.35/ bu, highest I have seen today was up .97. So those traders caught on the wrong side of market on 1/30 when March was 13.43, have finally found liquidity $6.07 later at $19.50! Scary stuff indeed!

***Didja Know: Segal’s Law: The man with one watch knows what time it is, the man with 2 watches is never sure!      GOOD LUCK TO ALL THE AREA BASKETBALL TEAMS!!!!

HAVE A GREAT WEEKEND!!! Ps…no markets on Monday!!!