Robert Zoellick (UN Food Program) reported in an article what needs to be heard more often, that export bans only make food problems worse. ‘Scare factor’ increases and hoarding starts. Aussie started loading the first post- Saddam wheat yesterday. Glencore sold 3 small cargoes (900m bu) for LH April/ FH May. Markets continue to send the "plant Corn" signal to growers. Beans need to be about 2.1-2.2 times higher than corn, this morning they are only 1.97. Agronomists estimate that in Illinois, growers MAY see a yield reduction of 1 bu/ acre for each day seeding past 5/5, and 1.5 bu/ day for each day past 5/15. Congress is poised to extend .54 ethanol import tax for another 2 years. Eventually the US ethanol industry needs to stand on its own feet without protection, but I’m not sure when we hit that point. There are other politics involved as usual as well. Congress is also talking about a .56/ gallon ethanol credit for ‘cellulosic’ ethanol. This .56 would be ON TOP of the ‘newly reduced’ (as presented in latest version of the Farm Bill) .45/ gallon blenders credit. USDA is still expecting about 3.2 byn bu of corn to be used to make 9 byn gallons of ethanol for ’08.

Aussie Bureau of Meterology says that La Nina is ‘officially’ gone, and that indicators have been reading nuetral for the last 2 weeks. They are not yet sure if there will be a shift toward El Nino, or back to La Nina. Weather has been a bit on the dry side in the North/ Eastern part of Aussie lately. Argie situation is still not settled, but the truckers said that they would side with the farmers. Farmers have promised no interruption in domestic delivery of ag products. The EU will vote on whether to accept RR beans in late May/ June. Most likely outcome will be dissension and arguments leading to ‘no decision’. Remember when this happens that approval becomes automatic.

***Didja Know: In the first round of the BEHT there were about 9.5 myn bu at an average px of 8.28 (lots of S. Plain locations…Texas, Kansas). Also about 102m bu SWW at $7.73. There are more Chickens than people in the world. Men tend to see better than women, but women tend to hear better than men (no surprise there).

***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***