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SEPTEMBER 10 USDA CROP REPORT REACTION PROVIDED BY: MINNEAPOLIS GRAIN EXCHANGE

 SEPTEMBER 10 USDA CROP REPORT REACTION
 PROVIDED BY: MINNEAPOLIS GRAIN EXCHANGE
 MINNEAPOLIS, Sept. 10 /PRNewswire/ -- Following the close of futures trading this afternoon, the United States Department of Agriculture released its 1991 USDA soybean and grain report. Estimates for U.S. grain and soybean production were reported at: wheat 2.407 billion, corn 8.77 billion and soybeans 2.085 billion bushels.
 The USDA also released ending stocks figures for major grains. 92-93 ending stocks for wheat came in at .674 billion, corn 1.826 and soybeans .315 billion bushels. 91-92 estimates were: wheat .472 billion, corn 1.081 billion and soybeans .285 billion bushels.
 The former USSR grain production was estimated at 166.2 million tons while former USSR grain imports came in at 28.6 million tons.
 Minneapolis Grain Exchange futures traders reaction:
 David Baxter, commodity broker, Linnco Futures -- 612-333-6212.
 "Tonight's report was a confirmation of what the trade has been assuming for quite some time, we have a large U.S. (2.407 billion bushel) crop and an equally as large world crop (539 million metric tons). But in the past several weeks the market has been struggling between supply and demand. Harvest delays in the spring wheat have probably made demand appear larger than it really is. The market continues to have a difficult time buying enough wheat which is evident in the strong premium structure.
 With a large percent of the spring wheat crop yet to be harvested, this market will have a difficult time trading much lower. On the other hand, if prices rise too much relative to competing wheat's we will limit the potential for additional demand. In the coming months we will see a battle develop between the U.S. wheat classes as "they" compete for every bushel of demand. Flat price, we will probably see the market in a 10-20 cent trading range either side of tonight's close (331.25 DEC).
 Mike Kvistad, vice president of marketing, Benson-Quinn Co. -- 612-340-5905.
 "Today's USDA reports once again increased the U.S. 1992/93 wheat production. This is/was not welcome news to a market which has struggled since the announcement of the U.S. EEP initiatives last week. Despite the announcement of EEP initiatives, U.S. exports continue to lag with the major world wheat importers. Thus the key to the direction for wheat prices appears to be tied to pending or luck thereof, wheat export activity. While crop quality issues continue to be a hot topic of discussion, to date the poor quality arguments have failed to sustain a rally in the wheat market. This has been true in both the U.S. and Canada. I would expect those who are bullish wheat will continue to offer the same reasons for bullish expectations. Those reasons being pending credit to the Russian Republic, poor U.S. and Canadian wheat quality, the recently announced U.S. EEP initiatives and seasonal considerations. However, it appears that those who are bullish continue to overlook the shear size of this year's world wheat production and the fact that most importers of world wheat inventories remain in economic disarray.
 Wes Oja, senior wheat analyst, Country Hedging -- 612-641-6550.
 "Today's USDA crop report appears to be a little bearish to spring wheat prices as well as to wheat prices in general. Given the increasing size of the wheat crop as well as a large world crop, we expect to see the market experience limited upside unless the USDA is quite aggressive with the EEP program. Longer term, we may see the wheat market move to a two tiered pricing structure with the market expressing a serious division between milling quality and export quality wheat.
 -0- 9/10/92
 /CONTACT: Colleen Smith, public relations director of the Minneapolis Grain Exchange, 612-338-6212/ CO: Minneapolis Grain Exchange ST: Minnesota IN: SU:


KD-LD -- NY094 -- 8276 09/10/92 19:11 EDT
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Date:Sep 10, 1992
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