Alaron Grains and Oilseeds Comment

CHICAGO - Feb 7/07 - SNS -- Following is the grain and oilseed futures comment from Alaron Trading Corp.

C O R N:

Monday's weekly export inspection report came out showing 32.3 million bushels of corn was inspected for near term export. This was down from 36.2 the week prior and 38.7 a year ago. Year to date inspections are up 129 m.b. A slight slowdown for our second consecutive week as corn flirts with prices just under contract highs. As I talked about on Friday's report corn struggles with first notice day to take deliveries coming Feb.. 28th March longs need to sell. Some will go into Dec. futures but fear of a very bearish March 23oth, planted acreage report will keep corn buying at a minimum. It has been three weeks since we hit our post Jan. 12th crop production report and as we move closer to first notice day at month's end and the March 30th report we are unlikely to push to new highs. This still leave us potential to fill our March gap on the chart down to 3.90 and maybe the second gap at 3.72. A close over minor resistance of 4.20 turns charts friendly and that could come if Friday's USDA monthly crop report out ahead of the opening, comes out with a lower carry over or ending stocks figure for corn. Last month put ending stocks come Sept. 1, 2007 at 752 m.b. the second lowest since 1975.

B E A N:

Monday's weekly export inspection report showed 35.6 m.b. of beans were inspected for near term export off from 38.2 the week prior but well over a year ago of 22.5 m.b. year to date inspections are up 135 m.b. Softer on the week but considering we made new contract high prices last week the number could be viewed as friendly. Strength in beans continue to come as beans benefit from long liquidation of March corn futures and rolling into long beans ahead of the March 30th planted acreage report where acreage reduction estimates run from 4 million acres to 9 m.a. less. Nov. beans have support at 7.80. Do not wait for big dips as Nov. is undervalued based on long term supply demand estimates.

W H E A T:

Monday's weekly export inspection report came in at 23 m.b. inspected for near term export up from 17 the week prior but under a very weak number a year ago of 25.2 m.b. Year to date inspections are down 121 m.b. after coming down to within 6 cents of our five month low last week we are triggering a little demand but it is just that, a little. We are still far behind last year's poor demand pace and most wheat being sold is feed quality. Can not see it as demand friendly. WXRISK.COM sees more rain, ice and snow across much of our dormant winter wheat acres from Kansas to Texas through Feb. 19th. This lend thought that ample moisture conditions may last through early emergence in march, when wheat begins to green up in Texas and Oklahoma. Technically the July Kansas City new crop futures finds support at 4.80 and resistance up at 5.10. Unless something enters unforeseen, wheat will follow corn's lead until dormancy breaks.

Tim Hannagan

Alaron Research Team

800.563.9510

thannagan@alaron.com

www.alaron.com

DISCLAIMER: The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. Alaron Trading Corp. its officers, directors, employees and brokers may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.

Information on this page is derived from third parties and is deemed to be reliable. STAT Communications Ltd. accepts no responsibility for errors, omissions or inaccuracies in any of the material presented on this web site. Opinions expressed on this web site are those of the respective individuals and/or institutions and do not represent the opinions of STAT Communications Ltd. or its management.