Linn Group Morning Corn Comment

CHICAGO - Apr 9/07 - SNS -- Following is the morning corn futures comment from the futures commission brokerage firm Linn Group.

The corn market rallied on Thursday on the back of the wheat market and the
forecast for very cold weather over the holiday weekend with the markets
closed Friday for Good Friday.  The extended cold and expectations of
multiple night freezes has wheat much higher as the damage to wheat is a
given, traders just arguing to the extent of the damage.  This cold front is
also reaching down into southern areas that have already planted corn and
any corn out of the ground could be damaged.  The crops that are damaged
will have to be replanted, further straining seed companies and reducing the
early planted corn numbers.  Export sales were weaker than expected, but
still ahead of last year.  Volume was pretty good and fund activity was
strong with traders estimating they bot 6-10,000 contracts by the end of the
session.  Weather remains the main focus for the near future because traders
are very worried about farmers not being able to get the corn acres planted
that have been estimated and precipitated the break in corn of over $1 off
the highs in the front months.  Spreads were again a major focus on Thursday
as we have many traders taking very large positions in bear spreads and if
this corn market heats up, the front months will lead the market higher.

eCBOT market was much stronger overnight as we saw the wheat market lead the
grain complex higher as the cold weather that was forecast last week did
happen and was colder for longer periods of time in many places.  How this
cold weather really affects the corn market is open for debate as some of
the southern areas will have to replant corn and this cold weather will
delay planting in much of the Midwest, but there is still plenty of time to
plant corn.  The May and December contracts both closed around 13 cents
higher with wheat as much as 20 cents higher.  The 6-10 day forecast shows
below normal temps and normal to above precip which is not good for getting
corn in the ground and when the market is depending on record acres, this
will create some very volatile markets.  Commitment of Traders showed a big
reduction in long corn positions and if we get into a big weather market,
you could see these funds getting long corn again, thus chasing the shorts
out of the market.  Look for wheat to be the leader in the near term and
corn following as the damage to corn is mostly not quantifiable, but only
speculation because of planting delays.  These markets are going to be very
volatile and very dangerous, so always make sure you have protection for
your positions.

eCBOT Overnight

Contract            Last      Change High      Low

ZCK7                379^4    13^4      385^2    375^0

ZCN7                391^2    13^2      397^0    387^0

ZCU7                394^6    13^4      399^6    387^0

ZCZ7                 399^2    12^4      406^0    395^4

Early Opening Calls: 10 to 15 cents higher

Top News:

-- Some serious freeze damage to Wheat and Corn over the long weekend in the
west and mid-south. The extent of damage will not be known for several days
and  some damage will not be known for weeks.

-- Average estimates for Tuesday's USDA supply and demand report: Corn   826
vs. 752 in March and 1.967 last year.

-- The USDA will release their first Corn planting progress report today.
Last year on April 9th Corn planting was 3% complete vs. 4% average.

-- A Chinese official at the Ag Ministry commented over the weekend that
judging from the rapid  development of the Corn  processing industry
domestic supply may become tight. This casing doubts about large new Corn
exports and is causing  the government to push for larger domestic
production.

-- Funds aggressive in Corn and wheat Friday buying 6,000 Corn and 3,000
Wheat.  Funds Sold 1,000 Oil.  Even Soybeans, Even Meal.

-- Corn  spreads: Fimat 1,000 CN/CK, Fortis 500 CN/CK, Citi 500 CK/CZ, ABN
200 CN/CZ

-- Outside Markets:  Gold trading  higher $673.00  up  .90, The Dollar is
trading steady vs. the Yen and Euro.  Crude down 37 cents to $63.91.

-- 6-10 day forecast shows below normal temps, normal to above precip

Cash Markets:

CIF Corn:  Apr. +23 to +25, May +29 to +31, June +25 to +29, July +30 to
+33, Aug. +?? to +34, Oct. +29 to +34.

River house bids higher  STL. up 2 at -3, Morris IL. River up 2  at -17,
Havana up 5 at -15.

PNW Corn trains steady : Apr. +70  May +75  June  +70

NS Corn     Apr. -13   May -11 J/J -14   Oct. -30   Evansville  CSX  -10



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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