Linn Group Morning Corn Comment

CHICAGO - Feb 1/08 - SNS -- Following is the morning corn futures comment from the futures commission brokerage firm Linn Group.

The corn market closed higher on Friday after making the lows early in the
session and then testing those lows mid-day.  The corn market keeps finding
support on any attempt to break this market as the export sales will attest.
Weekly export sales released before the opening were better than expected
once again as the current prices don't seem to be a deterrent to end users
yet.  The corn market found early pressure from a lower crude oil, a lower
stock market and weakness in the wheat market.  After mid-day, corn seemed
to turn around on active buying after we saw the stock market go higher
along with crude and wheat.  Besides the weekly export sales, there is very
little news out on the corn market.  The weather in Argentina remains a
non-factor with cool weather and rains forecast for next week.  There is
some damage in the corn market in So. America which will reduce yields, but
it isn't huge.  A grain analyst lowered estimates for Brazil soybean
production, showing that the stress on crops hasn't just been limited to
Argentina and the corn crop.

The overnight markets were higher with follow up buying after the rally late
in the day yesterday.  The corn market continues to find buying on any break
and corn follows other markets with little to no new news.  Weekly export
sales were strong again and showed the market that these higher prices are
not stopping end users from buying corn.  Outside markets are a mixed bag
today with the metals markets higher, crude oil lower, and the stock market
unchanged.  The monthly jobs number was lower than expected and is weighing
on the stock market this morning after it was higher last night.  USDA
announced export sales to So. Korea for another 210,000 tones of corn
overnight.  Traders also want to talk about the grain markets receiving new
fund money today with the beginning of the month.  We may have seen some of
that yesterday with funds buying 4,000 contracts on the day even with the
much lower market early in the session.  The corn market should open in-line
with the overnight markets and then look for direction.  Outside markets are
a mixed bag, but watch wheat for direction and possible new fund money
coming into the grain markets.

Globex Overnight

Contract            Last      Net Change       High      Low

ZCH8                506^4    5^2                   506^6    502^6

ZCK8                518^4    5^2                   518^4    514^0

ZCN8                527^2    5^0                   527^4    523^0

ZCU8                523^0    3^6                   523^0    518^6

ZCZ8                 520^6    5^0                   521^6    516^2

Early Opening Calls: 3-5 cents better

Top News

*USDA reported private sale of 210,000 mt US Corn sold to S Korea for 07/08
MY

-- China's futures industry assoc. said trading volume on the Dalian
exchange rose 140% of year ago month

-- Monsanto says France's recent decision to suspend distribution of the
company's GMO810 Corn variety was illegal.  Monsanto says France's & the
process by which it made its ban decision is it not only is harmful to
itself but the industry as a whole.

-- EU officials says internal sales of Hungarian Corn totaled 27,220 mt at
price of 193.5 Euros/mt

-- Dalian Exchange Chinese Corn futures ended 6 higher at 1,752 Yuan/mt
($1=7.20 Yuan)

-- Globex Corn Vol: 151,017; Pit Vol.: 33,277; Open Interest change: +9,713

-- Weather: 6-10 Day Forecast: Above Temps East, Below West. Normal to Above
Precip. The Corn Belt will see some light snow today. Saturday and Sunday
dry. Monday and Tuesday will see snow and rain. Temps near normal.

-- Outside markets: Energy Complex -0.05 at $91.70; Gold & Silver: +9.2 at $
931.9 & +0.302 at $17.289; US $ is slightly lower vs. Yen and is lower vs.
Euro

Cash Markets

-- CIF Corn steady up 2 Jan. +43 to +46, Feb. +42 to +44, Mar. +45 to +47,
Apr. +42 to +45, May +42 to +45, June +42 to +45, July +42 to +45,

TREND:

Oil market made a good trade. It feels like it is ready to extend their
gains, and if we can get through the old highs look for this market to
possibly trade between 60 and 62 cents. The spreads are implying that it is
ready to take place. You can bull spread March/Dec, with indications in the
sales this morning that the US soy oil is competitive into Asia. Meal will
not keep pace, but after the recent $40.00 break off the highs, I am not
sure meal is a good short. The fact that the meal and bean spreads gave back
their gains, indicates these markets lost some of its pizzazz.

Despite the strong gains off the lows, the corn market did settle almost
four cents off the highs. Still feel corn is in a range trade. Trade the
extremes.



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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