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/ 19 / 10

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

               WOW things have been just crazy this morning! Sorry for getting the report out so late this morning phones started early and have been very BUSY. Today is probably not a good time to start studying for finals. Futures started lower and wheats have tried to come back to even. Every time they get close, pressure mounts they lose ground all over again. Corn started down 10-12, worked back to -4 or 5 and are now down 17. Rain and a bit cooler weather will run from Nebraska to Ohio. Corn is pollinating, and the weather is GREAT. Expect corn crop scores to remain very high (small decrease in score possible) in this afternoons USDA crop progress/ condition report.

 Russian drought scare is, well ill-defined. I have read articles that said it is the worst drought in the last 130 years, the driest its been since ’72, and this morning an article that said this is the worst drought in the last decade…take your pick. Russian Grain Union estimated their wheat production 85-87 myn mt at the beginning of the month, rated the crop at 81-85 myn mt…essentially the losses range from nothing to 6 myn mt. The weaker $ has helped, as well as ocean freight rates which seem to be near the hopeful bottom. Additional shipping capacity and a slower Chinese economy has really dinged the Baltic index.

               Funds bought an estimated 380myn bu of corn last week…and according to the COT report (which does NOT include anything past last Tuesday) they are now long 790 myn BU! Add the fund position of 2 byn bu long and you have a HUMONGOUS spec long position. Specs also added a ton to their Chicago positions…read LOTS OF AIR under these futures numbers.

               Iraq booked 1.8 myn bu from Romania, Aussie, Canada each and 3.6 myn bu from the US and Russia. US wheat sold for $292/ mt, while the Russian version went down at $250. Total shipment report showed corn once again missing the mark with only 38.9 myn bu shipped (-16 myn bu vs. the USDA est). Wheat shipments were strong with 22.4 myn bu shipped which is about 3 myn bu more than needed to hit USDA numbers.

               Economic news: Moody’s downgraded Ireland to AA rating and the US homebuilder said that new home starts are at a 15 year low.

***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***