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      7/23/09

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

            An announcement by USDA that they will ?re-survey? 7 states before the next report (8/12) was well received by the futures pits. NASS will re-survey Illinois, Indiana, North Dakota, Missouri, Kentucky, Ohio and Pennsylvania?.Every one knows how much farmers like these surveys, and after the last round of reports, it would be truly AMAZING if somehow there were more acres! I wonder if you were a farmer and got a survey after seeing the price crash, what would you report? Today the market is factoring in at least a drop of ? myn acres. Truth is NO ONE has any idea, but it?s a place to start, and the market is already dealing with potential adjustments by the USDA. FWIW IF IF we use 160 bpa yield, a reduction of ? myn acres would only be about 73 myn bu. It?s not chump change, but when you are looking at a potential carryout of 2 + byn bu carryout, it doesn?t fix much either. Dairy industry is still using red ink on the balance sheet. At any rate the Corn futures are up 12-14 on the news?the market was probably oversold and needed more consolidation anyway.

            Export Sales report was disappointing. Corn sales were only 29.8 myn bu (we will still hit USDA projections for sales?but there does not appear to be ANY way that we meet shipments, carryouts will be tweaked). Wheat sales were also disappointing at only 12.6 myn bu. Traders were hoping for 11 to 18.4 myn bu. 1.8 DNS, 6.5 HRW, 2.9 SRW and 1.3 SWW. Our customers will get some GREAT pxing buy opportunities in August. Bunge reported earnings will be down 58% from projections (they said fertilizer was the biggest drag).

            We talked about Indian grain production. They will set a new record for wheat production at 80.6 myn mt vs. last years 78.6. In rice, also a record at 99.15 vs. lyr?s 96.7 myn mt. South Korea will try out some Indonesian corn booking 2 myn bu. Those following the progress of GMO wheat may find this especially interesting; Brazil?s experiments with GMO corn have been ?amaizing?. They doubled the GMO acres expected this year in their 2^nd corn crop, and traders expect over 50% next year. Here is the interesting part: Last year Brazil produced 60 myn mt, exporting about 10 myn, this year after playing with GMO they will have over 70 myn, exporting 20 myn mt. 20 myn mt is 787 myn bu. AVERAGE production in Brazil is 60 bpa, Argie averages 100 bpa, in the US we are gonna push 160. If for example Brazil is able to get to 120 bpa, and can export 70 myn mt= 2.7 BYN bu?the US is forecast to export 1.9 byn this year.