OUTSIDE MARKETS....... Thursday's weekly export sales report came out showing 679 t.m.t. of wheat was sold last week, up 64% from the week prior, largely going to countries like Sri Lanka, Indonesia, Japan and other countries whose food policies lean to quantity over value and not quality. A sharp break in prices have triggered demand as it always does. Corn sales were 598 t.m.t. versus a six month high last week of 1.2 million metric tons. Key world player China was in for 122 t.m.t. of the total versus nothing the two weeks prior and may be a signal of two things. One, value buying off the recent price break and two, my thinking China will wait for the harvest to begin before entering in any large way. Our long-term feeling was at a 50% harvested point, China enters. We will see, as they are the most un- pattern buyer on the world market when it comes to corn. With la-nina the weather event bringing dry weather in Argentina and China looking to be a large buyer of their corn this year, we may see them overbook US corn as a hedge against poor production there due to weather. Just as they do this time of year, overbooking US beans until Brazil's crop, versus weather becomes clearer. Bean sales were 404 t.m.t. with China in for 176 t.m.t. China is seasonally feasting with the five prior weeks at 112, 192, 257, 124 and 950 thousand metric tons. This weeks purchases to show up on next Thursday's report are at 430 thousand metric tons on three daily purchases this week. But the market ignored all grain news Thursday as index and trend following funds sold their portfolio long positions from grains, meats, energies, metals to sugar as financial uncertainties here and overseas saw industrial averages down 400 points and crude oil over 5 dollars a barrel lower. We haven't seen one of these wholesale selling by funds in over three weeks but in our current economic environment you have to expect these housecleaning's from time to time. Next week is the last full week of the month. Funds can still cut exposure but don't expect corn and beans to start really buying into the fear of what the October 12 USDA crop report may say until after Oct. 1 but watch out for next Friday's USDA small grains report. The Farm service agency report earlier this month acquired statistics from farmers claims from crop insurance from acres flooded out this spring. The report indicated farmers may have lost 3.5 million acres of spring wheat due to flooding based on their number versus the September USDA report. Common industry thinking is acreage losses were 800 t.a. to 1.6 m.a. Either way, there will be fear of a bullish report on Friday as the report will update all wheat estimates. This should give all grains a higher close on the week.