Linn Group Morning Corn Comment

CHICAGO - Apr 16/07 - SNS -- Following is the morning corn futures comment from the futures commission brokerage firm Linn Group.

The corn market moved higher on Friday in anticipation of planting delays
and the surge in wheat prices as traders try and assess the damage from the
cold snap last week into wheat country.  The May contract was 10 cents
higher and the December contract was over 7 cents higher.  Wheat seemed to
start the rally with corn following.  Traders continue to check the weather
forecast to see if there is going to be an opportunity to get into the
fields to plant corn.  There is a 5-6 day window with little to no precip
before rain is forecast next week/weekend.  Funds were very active as
traders estimated funds bot almost 10,000 corn and over 12,000 wheat.
Traders still feel that corn will get planted eventually, but the further
the delays linger, the bigger the opportunity of not all the corn getting
planted.  Markets are very volatile and until we get some corn planted in
the big producing areas, it is only going to get more volatile.  Exports
remain strong as evidenced by the weekly export sales.

eCBOT market was lower overnight on pretty good volume but I suspect a lot
of that volume was spreads as much of the electronic volume is spreads.  The
May contract closed over 6 cents lower after selling off almost 4 cents the
last hour of trading.  The corn market is trading the weather forecasts
right now and when some areas didn't receive as much rain as was forecast,
we saw the corn market sell off.  Traders will be looking at the crop
progress report tonight after the close for the first time and the
expectation is for the corn crop to be behind last year and the 5 yr
average. The surprise would be a bigger percentage planted, not a lower
number.  So. Korea and the Philippine's are looking to buy a total of over
550,000 tones of corn in the coming months, so demand remains strong for
exports, especially when we have lower flat price.  Weather remains the key
factor to the direction of corn and right now, it looks like many farmers
have a window to start getting in the fields this week and as we have found
out the last couple of years, once the fields are ready to go, farmers can
plant a lot of corn in a short amount of time.  Look for corn to open lower
and it will probably gain momentum as the day goes on unless helps hold it
up higher.  Traders will get their first idea of the wheat damage with the
release of the crop condition report after the close.  May options expire at
the end of the week.

eCBOT Overnight

Contract            Last      Net Change       High      Low

ZCK7                362^6    -6^2                  367^6    361^2

ZCN7                375^4    -6^0                  379^6    373^2

ZCU7                381^6    -4^4                  385^2    379^0

ZCZ7                 389^0    -6^0                  393^6    387^0

Early Opening Calls: 3 to 5c lower

Top News

-- Export News:  Livestock feed manufacturers in the Philippines request the
government to allow the import of 80k tons of corn, acc. to industry sources

-- Corn production in Philippines rose to 1.75 mln mt in the Jan - Mar
period, a rise of 14%.

-- Dalian Corn futures lower overnight.

-- eCBOT Vol: 210,599; Pit Vol.: 114,339; Open Interest change: -7,266

-- Weather Normal to Above Temps. Normal to Above Precip., the 6 - 10 day
shows.

-- Outside markets. Energy higher; US $ mixed, higher vs. Yen, lower to Euro
; Gold & Silver higher

Cash Markets

CIF Corn:  Apr. +24 to +26, LH Apr. +25 to +26, May +27 to +30, June +25 to
+27, July +29 to +32, Aug. +30 to +34, Oct. +27 to +32.



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/

DISCLAIMER: Futures and options trading involve substantial risk. The valuation of futures and options may fluctuate, and as a result, clients may lose more then their original investment. In no event should the content of this website be construed as an express of an implied promise, guarantee or implication by of from the Linn Group, Inc. that you will profit or that losses can or will be limited in any manner whatsoever. Past performance is not necessarily indicative of future results. Information provided on this website is intended solely for informative purposes and is obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.

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.