Duane Disque or Brian Peiler                              Jon Sperl or Bryce Olson

             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      7/13/09

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

             LOTS of news today! Futures all started lower, led by corn and beans. Corn took the early hit, and they keep on coming. Tyson foods started things off by saying they will sell 5 farms and liquidate 28% of their hog herd, and will sell 20m sows in the next 8-10 weeks. Smithfield said they will cut their herd by 10%, and the USDA said they don?t expect the dairy industry to reach a ?break even? point this year. One other item for corn (also very px negative). We talked earlier about the potential for yields to be revised upward. Bloomberg came out this morning suggesting 163.7 bpa. After all the math, that implies a 13 byn bu production number, and c/o for next year approaching 2 byn bu! All very negative stuff especially for corn / beans. The Sales report showed good sales numbers again for corn at 46 myn bu. The problem with corn now, and perhaps starting with wheat is the actual shipments. With only 7 weeks left in the ?corn? marketing year, hitting the USDA sales number will not be a problem, but we are gonna need to average over 58 myn bu each week to hit actual exports. Wheat sales were decent with 15.3 myn bu, but with 6 weeks into the year, we are already behind last years pace by 50%. On the week we sold .6 DNS, 12.2 HRW, 2.6 SRW and only .1 SWW. Japan was in last night but only booked a token amount of US wheat. One thing that will bear on this market is the carryout stocks. Today the market has about 130% of full carry. This is VERY rare. According to USDA, the world wheat stocks are so large you have to go back to 2000-01 to see similar numbers?that year the nat?l ave farm price was $2.78?.I don?t want to even think about that!

            Int?l stuff: We continue to see what we consider ?minor? tweaks at this time to the world?s S&D?s. France says that they will export about 1 myn mt (36 myn bu) more than previously expected. Indian monsoons started off great, then died, and are now returning. At one point the precip levels were ?46% of normal, and caused them to ?ban? exports. With rains returning, they are now ?29% of normal. Ukraine grain stocks are expected to grow 35% vs. last year (all grains). Wheat stocks are expected to grow 3.4 myn mt. Drought is starting to take a toll on several of Russia?s main production areas. Newswire said they will trim grain production by about 7% in some areas. Not a huge deal, but certainly noteworthy, and worth watching ESPECIALLY at post harvest. Egypt will issue a public ?Blacklist? of local wheat importers it says violated market regulations and practices and caused all these problems with Russian/ French wheat. They are hoping it will deter future violators.

            Points to ponder; One of the concerns in regards to trying to regulate markets is closing loop holes, and maintaining discipline, while still allowing the markets to work in a free manner. Excessive regulation may force more trading OFF exchange where there are no rules/ regulation, especially in times of high volatility (severe weather, war, politics etc). In those cases markets will trade either OTC or not. The cure can be worse than the disease. Is GMO wheat really the answer? Some questions I have: Who gains a competitive advantage? Can farmers replant seed, or will they be held hostage to pay a tech fee every year? Past the immediate benefits, longer term, who has the most to gain / lose by GMO wheat? Our customers? US growers? Foreign growers? The seed company? How will it be released? What is the market impact etc....

***Didja Know: If California was an independent country, they would have the world?s 8^th largest economy? They still haven?t figured out their budget, but they have agreed it will be balanced by NOT raising taxes?which is a very good sign?