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      2/ 22/ 10

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

            It?s that time of year again??What will the AVERAGE AUGUST price be???guesses must be in by 3/1.

            The morning started as ?one of those days?. Early call was for grain up 4-5 by some guesses, and down 4-5 by others. Both were partially right. Market feels like it is drifting right now, waiting for some sort of news to push it one way or the other. Any strength in grains this morning is coming from outside. COT report showed the specs now only short 92 myn bu of SRW futures (they bought about 150 myn bu last week). The index funds are holding. In corn the specs bought about 50 myn bu of corn last week, and are now long about 255 myn bu?the index funds essentially haven?t changed their position for the last 3 weeks. There is some ?chatter? about corn demand for ?10. If demand grows (not sure where the growth will come from)? but ethanol usage seems the most likely, that perhaps the 89 myn acres will not be enough to break even on the S&D?s. At this stage I think I would be more concerned about the potential yield curve and spring planting weather?take a peak at corn yield averages from the US the last few years: ?06-07  149 bpa, ?07-08 150.7 bpa,  ?08-09  153.9 bpa, then last year 165.2 bpa. I know that GMO seeds have helped, but IF we had a year of 155 bpa, then instead of needing 89 myn acres we would need 91.4 myn acres.

            Weekly inspection report was uneventful. Corn shipments were only 34 myn bu (we are missing the USDA mark by 11 myn bu/ week). Wheat shipments were ok at 17.7 myn bu. On the year we are 22% behind last year (USDA had estimated we would be ?19% vs. last year). Looking back on a shipment chart, we started losing export business in August last year?hmmm what else happened in August? On the week we shipped 5.9 DNS, 8.1 HRW, .9 SRW, .3 HWW and 2.3 SWW.

            FAO (Food and Agricultural Organization) sees higher ending world coarse grain stocks (due largely to huge Brazil/ Argie crops). They also commented about the possibility of India exporting 2.5 myn mt of wheat. India would do well to ?clear the deck? as they lack storage ability for the huge crop. It would just end up going out of condition. But actually selling/ moving the wheat is another matter.

***Didja Know: What capital city has the highest elevation in the US? The biggest hailstone found/ recorded was over 1 ? pounds  and landed in Coffeyville, Kansas?.-40? is the same temperature in Fahrenheit or Celsius?.The capital is Sante Fe, NM