Linn Group Morning Corn Comment

CHICAGO - Sep 13/07 - SNS -- Following is the morning corn futures comment from the futures commission brokerage firm Linn Group.

Corn rallied to close up 15 ¼ cents on Wednesday after the release of the
USDA crop production report. Initially the report was viewed as bearish but
traders say the market turned higher on expectations of strong long term
export and domestic demand and concerns about a decline in corn acreage for
2008. Traders say corn also got a boost Wednesday from inter-market
spreading as traders unwound long wheat short corn spreads. In yesterdays
report the USDA raised its crop estimate to 13.308 bil bu up from 13.054 bil
bu in August. This was above the consensus of analysts estimates of 3.123
bil. bu. Volume on Wednesday was very heavy with 255,918 corn futures
traded. Fund trade was heavy as well with funds buying an estimated 12,000
corn futures.

Early opening calls are lower. Traders say they expect a pullback after
Wednesdays sharply higher close. Also potentially pressuring the corn market
is pressure from the expanding US harvest which is well under way in many
areas. This morning the USDA released their weekly export sales figures
showing export sales of corn at 1,039,600 mt. This was above the range of
analysts expectations for 850,000 to 1 mil. mt. Weather forecasts for the
upper Midwest have potential frost in the forecast which could potentially
Overnight Chinese Corn futures closed higher.

Early Opening Calls: mixed - slightly lower

Top News

**USDA Corn 07/08 Export Sales Net: 1.039 mln mt; expected 850,000-1.4 mln

**USDA reports the private sale of 471,872 tons of corn for 07/08 to Mexico

-- Weather forecasters and energy traders alike eyeing the Atlantic Ocean,
where Tropical Storm Ingrid is expected to form within the day

-- Dalian Corn futures closed higher, Jan 9 yuan higher, May 10 higher

-- eCBOT Vol: 199,130; Pit Vol.: 51,591; Open Interest change: +6,407

-- Weather: Normal to Above Temps. Normal to Below Precip.

-- Outside markets: Energy complex: crude lower, products mixed with
gasoline higher ; Gold & Silver lower; US $ rebounds slightly from record
lows vs Euro

Cash Markets

--CIF Corn off 1 - 5. Sept. +?? to +54, LH Sept. +?? to +57,Oct. +58 to +60,
Nov. +57 to +62, Dec. +57 to +62, Jan. +44 to +?? J/F/M +45 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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