Alaron Grains and Oilseeds Comment

CHICAGO - Sep 14/07 - SNS -- Following is the grain and oilseed futures comment from Alaron Trading Corp.

Corn:

Thursday's weekly export sales report showed 1.039 m.m.t. of corn was sold last week, with 600 t.m.t. going to Asian markets. This is a good demand signal and should continue strong as harvest progresses on two fronts. One, ethanol plants look to be aggressive buyers of cash corn now that we are well under 4.00 and Asian countries find the dollar to yen relationship very favorable to buy U.S. corn. Next week's weather by wxrisk.com look warm and generally dry allowing harvest to progress quickly. I expect yields to continue to come in higher than expected off the magic of our bio-genetic seeds which year after year prove they need for less rain and love heat. Long term on March futures I remain bullish as corn follow beans race to find acres to plant and corn tries to find a price not to lose acres. March 2008 corn could see 4.60 to 4.86 but near term is in question with a record crop overshadowing the market. Dec. corn is technically friendly until a close under 3.40 occurs next week.

Beans

Thursday's weekly export sales report showed 346 t.m.t. of beans were sold last week with key world buyer China in for 142 t.m.t. We were off for the week but it is a decent number considering we are at contract highs. After making contract highs off Wednesday's U.S.D.A. crop report we pushed higher Thursday and Friday on talk of a frost hitting northern tier Midwest states. Most believe much of the crop is too far long to hurt but others see late planted beans in Minnesota and Wisconsin as being in harm's way. Needless to say, it will take the weekend to size up the concern as fear before fact or fact. Just a note: Beans hit by frost that are still green see the soy oil depleted but leaves plenty of meal after crushed. Like corn, beans too are very bullish into March of next year as beans try and find a price high enough to buy back at least 5 m.a. of the 11 it lost this year on fear we can run out in 2009. Near term we remain up until a close under 9.42 occurs on the November futures. The 1.50 rally since August 16th leaves room for a pull back if the frost is only a scare, wheat remains weak and yields come in better than expected. Stay long until support is broken.

Wheat

Thursday's weekly export sales report show a new U.S. weekly sales number of 2.132 m.m.t. sold last week. Egypt was in for 413 t.m.t. Well, as expected after Wednesday's higher open and down limit close and key reversal we saw further declines Thursday and on Friday's open as longs fat with profits took the leads of the chart signals. They broke through our support at 8.52 on December futures Thursday hitting a low of 8.31 then 8.30 Friday before recovering mid-session. Next week looks dry again in Australia but wetter in Argentina. The fundamentals are changing with Canada's crop coming for sale this month and Australia October 1, putting a lot more wheat for sale other than what the U.S. has put up the last 60 days. Demand still looks strong as Thursday's export sales report proved but funds are 90% technically motivated and to stay in a uptrend we have to hold next support of 8.25 or we are looking at 7.30 potentially.

Tim Hannagan

Alaron Research Team

800.563.9510

thannagan@alaron.com

www.alaron.com

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