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      5/19/08

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

            Sales reports from last week were weak. Corn only hit 21.5 myn bu. Wheat only got 4.4 myn bu o/c and 7.4 myn bu n/c…NO SWW posted. Wheat sales are behind USDA pace, but won’t miss by a significant margin…corn could be another story (2 weeks left in wheat marketing year 15 weeks left in the corn marketing year). Actual shipments on corn are WAY off pace, and last week they fell another 20 myn bu behind. Last weeks Crop progress report showed a sharp jump in corn plantings (51% vs. 71% last year and 77% avg). This week the market is expecting another huge jump and with good field working weather, analysts are expecting the crop will be pretty much planted by this time next week. Corn/ Bean spread still favors corn, and market chatter has corn acres growing. Lots of wheat production was lost over the weekend, with more to come. Rain has been elusive, not just in the PNW, but also Montana (crop adjusters have already been very busy) and into Colorado. USDA says Montana HRW acres WERE up 21% vs. last year…Look for wheat crop scores to post much lower scores this pm. The US says they will donate 18.4 myn bu of wheat to North Korea (14.7 under the UN food program) and another 3.6 myn bu under private programs. The House/ Senate have passed their version of the Farm Bill, and the president is expected to veto it shortly. One of the main issues is subsidies and how the new bill will fare under WTO. I know we have talked about it for over a year, but this component WILL not just go away. Interesting activity in the COT report showed the specs bailing out of Chicago (now holding a 100 myn bu SHORT against the funds 960 myn bu long, the funds are also holding 44% of the paper). Specs have also quickly adjusted their positions in corn…Funds remain long.

            Ukraine says that their wheat stocks are up 47% vs. last year and are projecting 8.7 myn mt of wheat avail for export. Argie strike continues, shippers say they are ok on stocks till tomorrow, then they run out. Tale of 2 stories between India/ Paki. India’s wheat procurement up 50% vs. last year and running 5 myn mt ahead of pace. Paki wheat pxes continue to soar, and the gov’t blames it on hoarders/ smugglers. Inflation is on pace to hit 17% for the year.

***Didja Know: USDA says US crop acres UP 7 myn acres vs. 2007? About 2.4 myn came from CRP. CCC says they intend to sell an additional 18.3 myn bu from the BEHT. GOOD! Lets get rid of it!!!