USDA National Grain Review

ST. JOSEPH - Jul 7/06 - SNS -- The USDA issued its latest weekly national grain market review, covering the period through Jul 7.

WEEKLY NATIONAL GRAIN MARKET REVIEW

   Grain and soybean bids for the week closed moderate to sharply higher.  Wheat
found support from hot and dry weather in the spring wheat belt.  The spring
wheat in some areas is going through severe stress and concerns are mounting as
the crop is going into a critical stage.  Hard red winter yields were very poor,
while soft red winter wheat yields were mostly good.  Spring wheat crop ratings
dropped 5 percent at 52 percent in good to excellent condition.  The USDA report
last Friday was bearish.  Spring wheat planted acreage came in at 14.595 million
acres as compared to trade estimates 14.53 million acres and compared to March
intentions report at 14.036 million.  Wheat stocks came in at 567.843 million
bushels as compared to trade estimates 548 million and 540 million a year ago.
   Corn and soybeans saw solid gains as support came from hot dry weather
outlook in the Midwest.  Corn is reaching a critical pollination stage where
yields can be negatively affected by hot and dry weather.  The USDA report last
Friday was bullish giving the market additional support.  Corn planted acreage
came in at 79.366 million acres as compared to trade expectations 79.75 million
and 78.019 million from the March intentions report.  June 1st stocks for corn
came in at 4.363 billion bushels as compared to 4.35 billion which was near
expectations.  Soybean plantings were reported at 74.93 million acres as
compared to trade average estimate of 75.16 million.  Stocks pegged at 990.14
million bushels as compared to trade estimates near 1.016 billion.
   Wheat was 2-28 cents higher with Minneapolis 37-42 cents higher.  Corn was
15-27 cents higher with KC white corn 30 cents higher.  Sorghum was 33-74 cents
higher.  Soybeans were 16-25 cents higher.

EXPORT SALES:
PURCHASER               COMMODITY                    TONNAGE       DELIVERY DATE

Japan               11.7 pct HRWW                    10,000        Sep 06
                    10.5 pct W. White Wheat          10,000
                    14.0 pct Dark N. Spring Wheat    20,000

Totals:  Wheat 40,000 tonnes.

**THESE MAY NOT BE THE ONLY EXPORT SALES THAT HAVE TRANSPIRED, BUT THEY ARE
THE ONLY SALES THAT COULD BE CONFIRMED BY THE USDA GRAIN MARKET NEWS.**

   WHEAT:  Kansas City US No 1 Hard Red Winter, ordinary protein rail bid was 7
3/4 to 10 3/4 cents higher from 5.35 1/2-5.66 1/2 per bushel.  Kansas City US No
2 Soft Red Winter rail bid was 12 3/4 cents higher from 4.38 1/2-4.58 1/2 per
bushel.  St. Louis truck US No 2 Soft Red Winter terminal bid was 2 to 28 cents
higher from 3.42-3.77 per bushel.  Minneapolis and Duluth US No 1 Dark Northern
Spring, 14.0 to 14.5 percent protein rail, was 37 to 42 cents higher from 6.04
1/2-6.14 1/2 per bushel.  Portland US Soft White Wheat rail was 4 to 6 cents
higher from 3.84-3.87 per bushel.

   CORN:  Kansas City US No 2 rail White Corn was 30 cents higher from 2.52-2.55
per bushel.  Kansas City US No 2 truck Yellow Corn was 26 to 27 cents higher at
2.35 per bushel.  Omaha US No 2 truck Yellow Corn was 19 cents higher from 2.23-
2.25 per bushel.  Chicago US No 2 Yellow Corn was 16 1/2 to 19 1/2 cents higher
from 2.37-2.45 per bushel.  Toledo US No 2 rail Yellow corn was 15 1/2 cents
higher from 2.24-2.37 per bushel.  Minneapolis US No 2 Yellow Corn rail was 2
1/2 cents higher at 1.93 per bushel.

   OATS AND BARLEY:  US 2 or Better oats, rail bid to arrive at Minneapolis 20
day was 10 1/4 cents higher from 2.23 1/2-2.26 1/2 per bushel.  US No 3 or
better rail malting Barley, 70 percent or better plump out of Minneapolis was 5
cents higher at 3.10 per bushel.  Portland US 2 Barley, unit trains and Barges-
export was not available per cwt.

   SORGHUM:  US No 2 yellow truck, Kansas City was 74 cents higher at 4.38 per
cwt.  Texas High Plains US No 2 yellow sorghum (prices paid or bid to the
farmer, fob elevator) was 33 to 38 cents higher from 3.96-4.05 per cwt.

   OILSEEDS:  Minneapolis Yellow truck soybeans were 16 3/4 cents higher at 5.48
3/4 per bushel.  Illinois Processors US No 1 Yellow truck soybeans were 24 3/4
cents higher from 5.93 1/2-5.98 1/2 per bushel.  Kansas City US No 2 Yellow
truck soybeans were 25 cents higher at 5.97 per bushel.  Decatur 48 percent
Soybean meal, processor rail bid was 2.10 to 2.60 higher from 171.50-177.50 per
ton.  Decatur crude Soybean oil processor bid was 148 points higher from 25.87-
26.87 cents per pound.  Sunflower Oil was not available.

SOURCE:  USDA-MO Dept of Ag Market News Service, St Joseph, MO

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