Linn Group Morning Corn Comment

CHICAGO - Sep 12/07 - SNS -- Following is the morning corn futures comment from the futures commission brokerage firm Linn Group.

Corn ended on the defensive on Tuesday down 4 ¾ cents. Traders say bearish
factors include an improvement in weekly crop progress, Brisk harvest pace
and expectations USDA on Wednesday will raise its U.S. corn crop estimate
from the current 13.054 billion bushels, already a record. Volume was
moderate with 155,419 contracts traded. Funds sold an estimated 5,000
contracts.

Today the USDA released the monthly crop production report showing Corn
production is forecast at 13.3 billion bushels, up 2 percent. Based on
conditions as of September 1, yields are expected to average 155.8 bushels
per acre, up 3.0 bushels from August and 6.7 bushels above last year. This
is above analyst expectations for production  13.054 bil. bu and expected
yield of 153.7.  In other news a Chinese govt. researcher says China is
unlikely to continue to export large amounts of corn due to increasing
demand. A study released by the Energy information Administration says that
a 25% requirement for renewable motor fuels would significantly increase the
use of Corn in Ethanol production leading to sharply higher corn prices as
well. Overnight Chinese Corn futures closed higher.

Post Report Opening Calls: 3 to 5c lower

Top News

**US Sept Corn 07/08 Carryout: 1.675 bln bu. ; est. 1.53; Aug Rpt 1.516

**US Sept Corn 06/07 Carryout: 1.142 bln bu. ; est. 1.13; Aug Rpt 1.137

**US Sept Corn 07/08 Crop Prod: 13.308 bln bu.; est. 13.13 bln bu.; Aug Rpt
13.054

**US Sept Corn 07/08 Yield: 155.8 bu/ac; est. 153.7 bu/ac; Aug Rpt 152.8
bu/ac

**World 07/08 Corn Carryout: 105.4 mmt; Aug Rpt 102.2

**Sept China 07/08 Corn Output:  147.0 mmt; Aug Rpt 148.0

**Sept Argentina 07/08 Corn Output:  22.50 mmt; Aug Rpt 24.0

**Sept S Africa 07/08 Corn Output:  10.50 mmt; Aug Rpt 10.5

-- USDA Ag Secretary Johanns says acreage in the CRP 10 year program might
be released.  He said a decision would come in 60 to 90 days.

-- South Korea bought 55,000 mt. US or South American non Gmo Corn for Nov.

-- Taiwan passed on tender for 29,000 mt. US Corn ans 16,000 mt. Soybeans
for Oct/Nov.

-- CBOT Deliveries:  Corn 1,599

-- Dalian Corn futures higher in overnight trade.

-- eCBOT Vol: 106,672; Pit Vol.: 41,658; Open Interest change: +6,472

-- Weather: Normal to Above Temps. Below Normal Precip. The Corn Belt looks
dry today and Thursday.

-- Outside markets. Energy complex higher; Gold & Silver: both lower; US $
lower vs Yen & record low vs Euro.

Cash Markets

-- CIF Corn steady up 2. Sept. +54 to +57, LH Sept. +60 to +62,Oct. +63 to
+66, Nov. +63 to +67, Dec. +62 to +64, Jan. +46 to +?? J/F/M +48 to +50



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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