Markets have traded both sides of the slate this morning with futures mostly lower. Corn is chopping around and the market seems content where it is, and wait for weather. Farm Bill is still in limbo. The latest extension will expire Friday, and Bush sez that unless they get it resolved, they should just do another 1 –2 year extension. Growers are making decisions and need to know what the program is gonna be. Collin Peterson is pretty adamant that they don’t want to do and extension, besides at the speed that Congress moves, it might take all that time. NWS says above normal temps/ precip for SRW areas, and normal temps/ precip for HRW areas. The $$$ set record lows against the Euro again last night. Pres. Bush has directed the used of BEHT sales to generate $200 myn for food donations. Here is an FYI for ya: there are about 33 myn bu left in the trust, 22.5 or so is HRW and about 9.9 is SWW. Over night Japan booked 5.9 myn bu of GMO corn. This is important when you consider that due to late rains and their impact on the EU crop last year, that their corn imports are up 839% vs. 2006 and it is almost all NON GMO (no wonder they are blaming the US for not raising enough NON GMO corn for them)! The benefits of GMO are well documented, and you might think that with all the worry about food/ environment/acceptance would be higher.

At the Int’l Food Aid Conf they were correct to point out that ethanol is FAR down the list of things to blame for higher food prices. The things at the top would be: Asia’s rapidly growing middle class, and their change in diet. Crop failures. Cheap US $$. Poor/ failed politics (like embargoes, export taxes). Under investment in technology that would greatly improve yields/ quality (GMO, Fertilizer availability, Improved Irrigation, improved varieties).

In other news: La Nina continues to weaken. The SOI index went from +21.8 to +8 on 4/14. This change would generally be beneficial to Western Aussie, less so for NSW, Victoria. Paki says they will need to import about 3-3.5 myn mt wheat this year. Indian Ag minister said so far they are not having any trouble procuring wheat.

***Didja Know: 1 myn acres will come out of CRP this year, and about 4.5 myn next year? We did have good prices this year, but since 7/1/01: Ave SWW price is $4.77, DNS $5.69, HRW $5.18. Ave prices in 2005 were: $3.92 SWW, $5.27 DNS and $4.49 for HRW. Ave foreclosure rate in the US is 1:538 today, but in CA it is 1: 204, and in Florida it is 1:282

***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***