Monday, March 31

PGG MARKET REPORT

by PGG Country on Mon 31 Mar 2008 09:49 AM PDT

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 3/31/08

	SWW	SRW	DNS		HRW		Barley	Corn
Month	Portland	*Chicago*	Portland	Basis	Portland	Basis	Portland	Cash Px	Basis
April	10.25		12.10	1.70	10.96	1.30	238	220
May	10.25	*9.29 CK*	12.23	1.80	10.96	1.30	240
June	10.25		12.23	1.80	10.66	1
July	8.85	*9.36 CN*	11.08	.75 N	10.16	.40	224
August	8.92		10.79	.90 u	10.17	.40	226
September	9.00	*9.65 CU*	10.79	.90 U	10.22	.50
*OND ‘08*	*+.07/ mo*		+.07/ mo					220
N/C 2009	*7.60?*	*-2.30 CNW*	*9.95 ?*	*Option Px*	*9.90?*	*Option Px*		204
*LDP's*	-7.11		-10.22		-7.20		-2.91	-3.11
***Club premium: .05/ bu.				*-2/ 1/4*	-60/ ½

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

The report is out, and judging by the movement in the futures, it caught some traders by surprise! Remember these estimates are based on a survey GROWERS completed the first part of February. CORN: USDA proj 86 myn acres. This is down about 1.5 myn lower than the average trade guess, and translates into ‘only’ a 12.04 byn bu crop (which is about 350 myn less than current USDA projected usage). Also means that IF everything worked as numbers are currently laid out that by the time we got to harvest in ’09 we would use up some c/o stocks, but still have about 1 byn bu in c/o. Also keep in mind, that if USDA averages hold out (the report averages 4% fewer acres than actual)…it implies 90 myn acres and an increase in c/o. BEANS: Most likely due to higher input prices, but also due to the stunning value of n/c beans, bean acres are estimated 3 myn more than avg trade guess. Beans are expected to close limit (.70) down. Wheat acres were actually very close to the avg trade guess, but there are about 3 myn more acres planted this yr. Vs. last (+2 myn more winter wheat (SRW), and +1 myn more spring wheat (not necessarily DNS). Today, any loss of wheat acres (flooding in Ark for example), probably favors beans…but one or 2 days of limit down and it is still PLENTY early for them to plant corn. To throw a bit of curve ball into all of this, is that La Nina is quickly disappearing, and in fact as waters warm, if trend continues we could be in an El Nino by summer time (good for crop prospects in most of the US…just not the PNW).

ADM’s case against the US railroads will be turned into a class action suit with up to 25 more names being added list. Bush signaled to the other WTO participants that the US is ready to get into WTO compliance (has anyone told the folks working on the Farm Bill?) if the EU joins in, and developing countries open markets.

Int’l: Argie strike was suspended temporarily during negotiations. The neg. failed and strike is back on. In Aussie: NSW, Victoria rec’d very good precip last week, WA and SA rec’d only light showers. France (who gets 44% of all EU subsidies) says that they are open to negotiation. We have been there before, and getting them to the table wasn’t the problem, it was loosening the grip they have on all the EU subsidies.

***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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Thursday, March 27

PGG MARKET REPORT

by PGG Country on Thu 27 Mar 2008 10:08 AM PDT

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 3/27/08

	SWW	SRW	DNS		HRW		Barley	Corn
Month	Portland	*Chicago*	Portland	Basis	Portland	Basis	Portland	Cash Px	Basis
April	10.45		12.95	1.70 N	11.98	1.43 K	238	212.50
May	10.55	*10.17 CKW*	13.05	1.80 N	12.03	1.48 K	240
June	9.25		13.05	1.80 N	11.61	1.10 N	238
July	9.30	*10.18 CNW*	11.90	.65 N	11.01	.50 N	224
August	9.35		11.45	.75 U	10.99	.45 U	228
September	9.42	*10.37 CUW*	11.45	.75 U	11.04	.50 U
*OND ‘08*	*+.07/ mo*		+.07/ mo					212.50
N/C 2009	*8.00?*	*-2.30 CNW*	*9.95 ?*	*Option Px*	*9.90?*	*Option Px*		204
*LDP's*	-6.86		-10.22		-7.20		-2.91	-3.11
***Club premium: .05/ bu.				*-2/ 1/4*	-60/ ½

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

Egypt booked 6.6 myn bu of US SRW last night at $10.48 LH May TOS. Export sales report showed Corn with 28.7 myn bu (low end of the scale, with 3.9 of that for n/c. Beans only need 1.6 myn bu to stay on pace, but we sold 19.6 myn bu (thanks Argie, more on this later). Wheat sales tallied 14 myn bu o/c and 6 myn n/c for a total of 20 myn bu. We only need to sell 26 myn more bu, and have 9 weeks to do it in! Weekly breakdown was: 2.1 DNS, 4.2 HRW 4.5 SRW, and 3.1 SWW. Overnight 1 of the 2 main oil pipelines in Iraq was blown up, if crude takes a hike, expect corn to follow.

Con-Agra released a press report saying they would sell their Commodity Trading/ Merchandising Operations to a hedge fund for $2.13 byn. They will use the money to plow back into core business. DTN ran an EXCELLENT article about the impact/ pressure created on grain companies/ co-ops by the credit crunch and required margin to buy/ sell/ hedge grain. Let me know if you would like a copy. Also a US judge in Manhattan dismissed a class action lawsuit brought by US farmers against the AWB saying they (US farmers) did not demonstrate a loss associated with AWB activities. ADM is suing 5 major US railroads on charges of anti-trust associated with freight surcharges. USDA is considering a proposal by the food industry to NOT identify retailers selling tainted products, unless there is a serious (CLASS I) recall. New technology being discovered by Shell Oil is working on “converting” sugar molecules to hydrocarbons vs. the more common fermentation/ distillation. They say early results look promising and end product is “gasoline/ gasoline blender” and can be handled exactly the same way as gas (easier transportation/ reduced pipeline worries). Sugars would still come from renewable sources like corn/ grasses etc.

Brazil is nearing ½ point on what is shaping up to be a record bean crop. An estimated 300-500m tons of beans have been switched from Argie to US already. Strike continues and they are gaining “grass roots” support. Prez of Argie says they will not cave into extortion…I think that is precisely what the farmers are saying also. India is blaming high world food prices on US energy policy. Perhaps that is part of the equation, but when did the US become responsible for providing the world with cheap food? While it did rain in parts of China, the Northern provinces are still rated as “severe drought”. 50% of China’s water is rated “unfit to drink”, with 20% of the world’s population, and 7% of the world’s fresh water, they have some serious problems to sort out.

***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, March 26

PGG MARKET REPORT

by PGG Country on Wed 26 Mar 2008 10:27 AM PDT

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

3/26/08

SWW

SRW

DNS

HRW

Barley

Corn

Month

Portland

Chicago

Portland

Basis

Portland

Basis

Portland

Cash Px

Basis

April

10.45

13.15

1.70 N

12.13

1.43 N

238

212.50

May

10.45

10.36 CKW

13.25

1.80 N

12.18

1.48 N

240

June

13.25

1.80 N

11.77

1.10 N

July

9.30

10.42 CNW

12.15

.70 N

11.12

.45 N

224

August

9.35

11.81

.85 N

11.20

.40 N

226

September

9.42

10.60 CUW

11.81

.85 U

11.25

.45 N

228

OND

. 08/ mo

213

N/C 2009

8

-2.00 CNW

10.80

Option px

9.90

Option px

203.60

LDP's

-6.96

-10.62

-7.70

-2.91

-3.04

***Club premium: .00/ bu.

-.02/ 1/4

-.70/ 1/2