Linn Group Morning Corn Comment

CHICAGO - Aug 1/06 - SNS -- Following is the morning corn futures comment from the futures commission brokerage firm Linn Group.

Corn Update:  Corn market finished firmer yesterday on the heat that had
taken hold over the entire Midwest with most area's seeing up 90's to low
100's.  As most traders said this morning, the hot weather can trim yields
by hurting the ear-filling stage of the crop development, but we are well
past the critical pollination stage.  Funds were pretty quiet buying 1,000
contracts and with the month end, there was a lot of spreading going on all
day.  Gains were limited in the corn by the cooler forecast for the middle
of the week pushing beans lower.  The crop progress report showed 56%
good/excellent 3% lower than a week ago, but the market was looking for a
2-3% drop, so no surprise there.  Volume was heavy, but the market lacked
direction which surprised some traders since it was the end of the month.

   ECBOT market was a little stronger overnight on decent volume with only a 2
cent range.  Trade will concentrate on the side-by-side trading starting
today in the ag markets and how it will affect the markets as much as they
will on what is going on in the trading pits.  Corn today will feature some
position rolling and every trader continuing to speculate on corn yields.
One veteran trader was getting worst case scenarios out of Nebraska and
better than expected reports out of Michigan and Ohio.  The big question is
whether or not both will cancel each other out or will one area dominate and
become the big surprise of the harvest.  Traders continue to look at exports
with the inspections lower than expected, but officials are saying that
China will be importing corn over the next couple of months.

   Check out www.cropscout.com   to see the latest
crop progress.

   Ag futures start side-by-side trading today.

   Overnight News:

   -- CIF corn was steady with Aug +48 to +50
   -- 6-10 day forecast shows above to normal temps, normal precip
   -- Volume was 167.9, with open interest down 9.7 to 1394.4
   -- Energy markets are higher overnight with stocks lower

   TREND:

   The market should respond positively to the crop reports overnight---but
that was the reason for the gains today---be careful buying a rally. Expect
the market to sell off after a higher start.

   Note tomorrow is the first day of side by side trade in the grain market
e-CBOT and the pit open outcry. Be sure to indicate the market intended for
orders.

   If you have any questions or if you 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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