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/ 15 / 10

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

               WOW! Futures are smokin’ hot this morning! At one point nearby wheat futures were up .38! Basis levels are just getting crushed all over the board. We have ?? for the nearby red wheat bids, what the exporters are really trying to say is CALL before you book. Very uncertain times indeed. Specs have total control of this market and no worries of convergence or deliveries for another 5 weeks. The way they are bidding the futures up, you would think we are nearly out of grain.

               Sales reports were steady once again. It will be interesting to see how the rally impacts the end users, it is hard to imagine that they will rush out and increase purchases. Corn sales only tallied 39 myn bu. So much #3 corn has been finding its way to the Gulf that exporters have doubled the discounts for #3’s. As in the last few weeks the sales numbers aren’t the problem with corn, it’s the actual shipment, and with 7 weeks left in the corn marketing year, today it looks like we miss the export shipments by about 100+ myn bu. Wheat sales were mediocre at 11.3 myn bu: 3.1 DNS, 6.4 HRW, .3 SRW and only 1.4 SWW. The futures rally has tugged cash bids along, and again, it will be interesting to watch the sales numbers. The weaker $ and ocean freight will be beneficial.

               Market is ‘ABUZZ’ about weather concerns. In Europe the hot/ dry hit the last week going into maturity. Today Strategie Grains (Europes version of USDA) has trimmed wheat production by 2.8%...and projected 129.5 myn mt of wheat this year vs. last years 129.8. Shoot we can lose 2.8% on a hot weekend in May! India’s monsoon has been a bit lighter the last week. No damage or harm to Ag, but it is getting ‘above the fold’ attention…they are also running at 10.6% inflation.

               How much higher can we go? Who knows? The thing to remember is that this is a spec driven rally, not a fundamental or demand driven one. At some point gravity will kick in, but I have no idea if that happens tomorrow or 3 weeks from now. It’s markets like these that seem to emphasize the need for a market plan. Margin calls will be big, and cost to maintain HTA’s will increase. Brings to mind some of the trading rules I have posted above my desk…like #18. When the market is wrong, it doesn’t pay to be right. #16 pigs won’t eat $4 corn or $400 meal.

***Didja Know: US foreclosures are up 8% this year (could be more than 1 myn units this year). Nevada leads the way with 1:17 being foreclosed vs. the national average of 1:78.

***All bids are subject to change, please call for CONFIRMATION of prices. All information in this letter is from sources deemed reliable, and is for informational purposes only***