Linn Group Morning Corn Comment

CHICAGO - Jul 27/06 - SNS -- Following is the morning corn futures comment from the futures commission brokerage firm Linn Group.

Corn Update:  Corn market sold off yesterday with rain coverage in IL and IA
considered a positive for crop development and funds selling app. 5,000
contracts.  As I say everyday, even though weather isn't a huge factor this
time of year, the corn market did like key producing states getting a drink
in front of the hot weather coming in this weekend.  Rain coverage was wide
spread with different areas getting different rain totals.  As one trader
said yesterday, the corn market has no reason to rally and the market should
find buying as it moves lower.  Funds have a huge long fund position so that
makes the market vulnerable to liquidation which will keep the market from
buying unless they see something change.

ECBOT market was relatively quiet overnight as we saw the market close in
the middle of the range up 1.  Traders this morning will look at export
sales to help move the corn market a little higher as the 975,000 was above
the estimate of 650,000 - 850,000.  Export sales and demand for US corn
continue to drive this market, not the weather even as the hot temps move
into the Midwest this weekend.  The hot weather ridge moving into the
Midwest this weekend will cause some traders to not sell the market very
strong, but at this point, the western corn belt is getting worse, but the
damage is done and the eastern corn belt can't look any better.

Don't forget to check out www.cropscout.com   to
follow the crop development.  The crop scouts started last weekend and are
making their way across the Midwest.


eCBOT Overnight
Contract            Last      Net Change       High      Low
ZCU6                240^6    1^2                   242^2    239^6
ZCZ6                 257^0    1^0                   259^0    256^2
ZCH7                271^0    1^2                   272^4    269^6
ZCK7                281^0    1^4                   282^0    279^4

Opening Calls: Steady to lower

Top News
--Funds a little more active Wednesday.   Funds sold 6,800 Corn, 6,000
Wheat, 1,800 Soybeans, 2,000 Oil.  Bought 3,200 Meal
-- Corn spreads: ADM 300 CH/CZ.
--Census Bureau crush report this morning. Estimates: Crush 137. 5 to 138.0
Oil stocks  2.900 to 2.940    Meal stocks   234 to 302
-- 6-10 day forecast shows above normal temps, normal precip
-- Volume was 124.7, with open interest up 1.15 to 1394.5



**USDA Corn 05/06 Export Sales Net: 975,900 mmt
**USDA Wheat 06/07 Export Sales Net: 464,700 mmt
**USDA Soybeans 05/06 Export Sales Net: 198,700 mmt
**USDA Cotton 06/07 Export Sales Net: 43,200 rbales


Cash Markets
Cash market steady to weaker.  CIF Corn steady Aug. +46 to +48, Sept. +52 to
+60.
River house bids mixed  STL. up 1 at -10, Morris Il. River off 1 at -32.
Decatur  off 1 at -8.


If you have any questions or want to discuss specific trade recommendations,
give me a call directly.

Jim Riley
Linn Group
877-787-6278
jriley@linngroup.com

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