MID COLUMBIA PRODUCERS, INC.

P. O. BOX 344, MORO, OREGON 97039-0344

(541) 565-3737 (800) 325-9327

July 2008

P. O. BOX 344, MORO, OREGON 97039-0344

(541) 565-3737 (800) 325-9327

September 2002

Updated Web Site http://www. mcpcoop.com

Web Site http://www. mcpcoop.com

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GRAIN MARKET NEWS

Dockage

Exporters are now changing their dockage discount schedules. Some schedules show a discount as severe as $.05/bu at .2% dockage and the discounts go up from .5% dockage. What the final schedule will look like is still somewhat fuzzy at this point. None of the exporters are paying a premium for ultra clean wheat. However, at MCP owned elevators, to incentivize ultra clean wheat, we are paying a $.03/bu premium for .14% or less actual dockage and charging a $.02/bu discount for .15% actual dockage with increases thereafter. This schedule of discounts is subject to change so please check with Lindy or Donna with any questions or for updates on our discount schedule.

Rehash of Harvest Notes of Interest:

v Harvest elevator hours will be 8:00AM to 8:00PM. Keep us posted on your estimated start date so we can be sure to have your elevator open by that date.

v Trucks need to be inspected for contaminants prior to harvest. We will inspect at Biggs, The Dalles, Moro Office, and Wasco Seed Plant and also at all inland elevators when they are opened for the harvest season.

v Please inform us of any changes in splits or ownership name changes. This will enable us to provide you with accurate information and reduce lag time and need for later changes.

v Those of you who deliver your harvest grain to inland elevators will participate in MCP’s trucking division patronage.

v After harvest for deliveries at elevators other than barge facilities, the deliveries will be subject to an $.08/bu increase in differential off of Portland.

Wheat Market

Relative Value always drives the market. Each day it might be a different key driver of relative value. Right now, depending on your timeline we are looking at a number of relative value plays. First of all, the wheat market is in turmoil with corn pulling to the high side and world supply and demand pulling prices to the downside. Corn is the relative value play on the upside of the market. Corn prices are high due to a projected small crop and a relatively fixed demand from ethanol facilities. The cattle feeders then have to pay a higher price for corn OR substitute for something else, such as wheat. If wheat trades near corn prices and Kazakhstan and Russia continue to make sales at a discount to US wheat then US wheat will get fed to cows either domestically or abroad.

The key indicator to set your local price in the long term is the status of the Australian wheat crop. The USDA is still predicting 23 million bushels for Australia’s crop but if it is closer to a normal crop of under 20 million we could see some price pressure on the upward side. Things are so volatile at this point, we are not making a solid prediction either way on where the market will take us.

Grain Processing Plant

We have been touring the seed production fields and the quality looks very good. We are happy with the kernel quality especially in light of the recent dry and hot weather. It appears we will cut a solid average crop and seed quantities should be more than adequate for your needs. We have increased production of ORCF 101, Tubbs 06, and Goetze soft white wheat.

This fall, the varieties will include Stephens, Madsen, Tubbs 06, Gene, ORCF 101 and Goetze soft white varieties. We will have Coda for our club wheat and Strider for our grain barley. Our forage varieties will be Trical 102, Trical 103 BB and Hoody Barley.

Please give Lee or Jerrie a call to contract your fall seed needs. For more information call 541-442-5555 or 888-442-5556.

MARK YOUR CALENDAR

Please join us at the Market breakfast meetings

Gilliam County Friday 7 a.m., Aug 29, Sept 12 and Sept 26 at the Country Café in Condon.

Sherman County Friday 7 a.m. Aug 22, Sept 5 and Sept 19 at the Senior Center in Moro.

Wasco County Tuesday 7 a.m. Aug 26, Sept 9 and Sept 23 at Kramers Market in Dufur.

FUEL DEPARTMENT

The market continues to be ultra volatile. The largest factor is the value of the dollar. We saw a graph that showed almost a 100% inverse relationship between the price of a barrel of oil and the price of the US dollar versus other currency. If the US dollar continues to strengthen based on the possibility of an interest rate increase, we should continue to see price depreciation in the fuel complex. Otherwise, watching for these dips can provide an excellent time for contracting some or all of your fuel needs. We have a number of options that will help you in managing your fuel risk. Please give Jeff a call at 541-565-3737 to discuss your options.

NEW CARDLOCK HIGHWAY DIESEL RULES FOR THE STATE OF OREGON – Effective, January 1, 2009 the State of Oregon is requiring that we change the way we issue cards for those customers that do not pay State of Oregon fuel taxes when the fuel is purchased. Cards will now be issued to each vehicle that is exempt from paying state tax at purchase. We will no longer be able to issue cards to specific users without defining the vehicle the card is to be used for. We will be sending out a more detailed letter in the near future to those that this new rule impacts. This might be a good time to update your cards anyway (see below).

NEW FUEL CARD OPTIONS! –You now have the option of receiving fuel cards that will ask for the odometer and one other piece of information. Some are putting the driver number while other customers are putting the vehicle number into this space. This should help you in tracking fuel usage. Please call Lara Stradley at the Moro office to get new cards if you are interested in this feature.

WASCO FARM STORE

541-442-5701 or 800-442-5703 Let us serve your needs!!

Store Hours-----Monday through Saturday 8 am to 5:30 pm

Merchandise Giveaway!!

As of July 12, no one has won our town pot. As a result, on Saturday July 19^th at 9:30 come to the store for your chance to win $1,900 in store merchandise (including $1,800 in the town pot and $100 in the general pot).

July True Value Bargains of the Month

· 5/8” x 75’ NeverKink Heavy Duty Garden Hose - $16.99

· 6’ Black Wrought Iron Patio Torch - $5.99 – Great for summer entertaining!

· Flexible Stem Gas Lighter – FREE – after mail in rebate

August True Value Bargains of the Month

· 2 Pack 17.5Oz Wasp and Hornet Killer - $2.99

· 4” High-Velocity Personal Mini Fan - $4.99

· 8-Pk Bounty Basic Paper Towels – 2 for $11.00 – That’s 16 rolls!