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      7/6/09

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

            Crude is lower. Opening call was for stronger futures, but with crude down hard, beans off 35-40, Corn and Wheat are clinging to very small increases. The talk and pressure to do something about position limits in commodities is increasing. They will likely start with the energy sector, but grains won?t be left out either. The big question from my perspective isn?t will they? But rather how much/ how fast? To give you an idea (this is over simplification) A quick peek at the COT report is pretty telling?Although the funds are holding 760 myn bu, that only works out to about 152,000 caks. The report says there are 30 funds, so that is only an average of 5,066 caks each (if they are all equal). The position limits I believe are 6500 caks each. Its not the same story in corn. Funds are long 1.526 byn bu that is about 305m caks. Again there are 30 funds listed, meaning that on average they are holding about 10,200 caks apiece vs. the 6500 cak limit. It?s a complex issue, made more difficult by the fact that the US produces about 350-400 myn bu of SRW, while we produce about 12.5 Byn bu of corn?should the limits be the same? The market impact question though is; how much, how fast.

            Corn conditions slipped 1% point yesterday, and so the DNS crop ratings were a bit weaker as well. The other thing that will impact this market (price positive) is the ?browning effect?. What this means is that Green crops almost ALWAYS score higher, because they are green. Does not really mean the yield will be there. As the crop matures and gets closer to harvest, it may be in just as good of condition, but will score lower as it loses some of the lush ?greenness?. Corn silking is about 8% vs. 16% on a 5 year ave.

            Brazil bean production is estimated to be down about 5% vs. last year. Indian monsoons were off 46% the last 30 days, but weather mans says rains should resume for the next 4-5 days. The overall monsoon is projected to be less than normal, but its too early to measure/ estimate any production losses. Philippine feed wheat imports are up 10X last years levels and the gov?t just increased the import feed wheat tariff.

***Didja Know: ?Cash for Clunkers? law that just passed; Cars must have been continuously licensed/ insured by the current owner for at least the last year. All cars/ trucks will be scrapped. That means that any trade in value must NOT exceed scrap value. There are other details, but once you get through it all, the overall impact seems like it will be pretty minimal to the market/ economy.