Sales reports this morning showed strong sales once again in corn with 43.44 myn bu. Wheat was interesting in that we had 11.5 myn bu of old crop PLUS 5.7 myn bu of NEW CROP. It is unusual to see that type of n/c volume this early in the year. With world supplies of wheat poised to run out, end users are just wanting to get coverage no matter the cost.

Bush is still threatening to veto what ever version of the Farm Bill that Congress eventually offers up if it contains tax increases, and doesn’t curb subsidies.

India is now projecting their wheat harvest at 74.8 myn mt (2.75 byn…which is a bigger crop than the US produces). This latest estimate is about 1 myn mt smaller than last year. Algeria came in unannounced and booked 7.2 myn bu…supporting the idea that at some point price isn’t as important as providing food…they NEEDED wheat. Russia sold another 1.1 myn mt of intervention wheat to domestic channels to ‘cool’ food inflation. Brazil said that they expect to double ethanol production in the next 5 years. They expect to increase sugarcane production by about 8.5%/ year…but it will still only take less than 1% of the land or 3% of total available farmland.