Linn Group Morning Corn Comment

CHICAGO - Jul 31/06 - SNS -- Following is the morning corn futures comment from the futures commission brokerage firm Linn Group.

Corn Update:  Very light volume on Friday as the market seems to be taking a
break and has all the traders on vacation.  Not even the extreme hot/dry
weather could push the corn market higher, but then again, the weather is
more important to the soybeans than it is to the corn market.  Commitment of
Traders showed the funds long app. 200K contracts, but interestingly, funds
are long 300K new crop, short 100K crop.  As one trader said, this points to
a possible rally in old crop if we start to see new demand come into the
corn market over the next couple of months and it pushes out the shorts.
Funds were pretty quiet with the market showing the funds selling 3,000
contracts.

ECBOT market was stronger overnight as it seems the hot weather finally
found some traction overnight, or else corn was just following the bean
market higher.  Traders looking at the corn market as a demand market as the
hot weather is not having a great affect on the corn market as it is past
the pollination stage.  Traders continue to talk that even though for the
most part the corn market looks great, we NEED to have a good yield just to
keep up with demand.  Cash traders say that Indonesia is in the market for
100K corn and are looking at US and Argentine sources as the prices are
about equal.  Traders will be looking forward to the crop progress report
this afternoon after the close with traders saying it should show crop
conditions unchanged.  Some traders are speculating that the crop conditions
will be lowered because even though conditions have improved in the East, it
has gotten worse in the West.  Traders are saying the overall trend is a
demand corn market and that is what will move the corn market, not weather.
We continue to see better export numbers every Thursday and there is
discussions of more buying coming out of the Far East.

Opening Call -  2-3 higher

Don't forget to check out www.cropscout.com   to
see the crops across the Midwest.

Overnight News:

-- CIF corn was up 1 with July +46 to +48, Aug +48 to +50
-- Volume was 88.4, with open interest up 6.3 to 1403.9
-- 6-10 day forecast shows above normal temps, normal to below precip
-- Overnight markets show metals mixed, energies much stronger and dollar
lower against most currencies.
-- Some talk of Indonesia buying 100K of either US or Argentine corn


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

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

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