Alaron Grains and Oilseeds Comment

CHICAGO - Feb 6/08 - SNS -- Following is the grain and oilseed futures comment from Alaron Trading Corp.

Sorry for the one day delay in our Tuesday report, but Tuesday I did a seminar on grains.   The seminar was  sponsored by the two Chicago Exchanges and Alaron.   If you did not tune in to the one hour grain presentation, and would like to hear it go to Questions@Alaron.com to have them explain how to pull up the archive and feel free to get a copy of the 2008 research report.   Jumping ahead:   corn and bean prices were up limit at one point today as traders get positioned for wheat is perceived to be two bullish reports.   The first is Thursday pre-open weekly export sales report telling us how much of each grain was sold last week and is a gauge of demand.   Because of the beginning of the Asian Lunar Holiday beginning today exports to those regions should slow leaving the trade assuming they loaded up on grain last week to show up on Thursday report.   The next report is Friday pre-open when the USDA monthly crop report comes out.   It is been along time since we saw a bearish report and the trade assumes the government will lower ending stocks again.   This all has everyone wanting to be long.   Minneapolis spring wheat futures continue to seek a price high enough to beans to insure they do not lose a single acre to beans at their May planting.   While they drag K.C. winter wheat and c.B.T. soft red winter futures along.   September new crop spring wheat is 10.85 while new crop November beans are 13.08.   Do not use the near 15.00 front month price to assume it will buy those acres.   It is the new crop futures that are hedge able.   there not high enough yet.   Technical's read like this:   May corn has support at 5.20.   May beans 13.40 and May wheat 10.00.

End.

Tim Hannagan

Alaron Research Team

800.563.9510

thannagan@alaron.com

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