We actually discussed this about a year ago. The process is similar to the pellet making process, just bigger. About 4 years ago on ebay I saw a straw log making machine for sale, Sold like $7000. original price was $250,000.
All you have to do is grind the straw to small pieces, then press the dickens out of it(think like 30,000 psi). As you press the temperature of the material will rise to about 300 degrees. melting the natural wax. as it cools the wax rehardens and holds the log together.
The major problem with a straw log is that you have a log made of straw. You do a lot of work to make something to burn , that does not burn any better, but is 25% smaller in mass. The logs burn way too fast, produce little heat, and has plenty of ash. It would be just easier to burn the straw.