Linn Group Morning Corn Comment

CHICAGO - Feb 13/08 - SNS -- Following is the morning corn futures comment from the futures commission brokerage firm Linn Group.

The corn market closed lower on Tuesday after a sharp decline in the wheat
market dragged it down and we continue to see some profit taking after new
highs were made last week.  As one trade said, it is hard to keep corn from
going lower when wheat is down so sharply.  The March contract closed 5 ¾
lower and the December contact was down 5 cents.  Traders said the corn
market could be attempting to consolidate after last weeks run up and the
negative impact of traders covering long wheat positions. The corn market
largely ignored the USDA release of its baseline production numbers of 88
mil acres compared with 93.7 mil acres in 2007.  Traders said that with
little to no fresh fundamental news, the corn market is trading technicals
and the outside markets.  Volume was very strong again at over 300,000
contracts and funds were net sellers of close to 7,000 contracts by the end
of the day.  Weather in So. America remains good as rains in Argentina are
helping the corn and soybeans, but we conditions in Brazil are hampering the
start of soybean harvest.

The corn market was lower overnight selling off late in the session after
trading in a tight range most of the session.  The wheat market is the
leader of the grain complex and will lead the grain markets.  There isn’t
any real news out on the corn market this morning.   The market had little
reaction to the USDA baseline report released yesterday.  Weather in So.
America remains a non-factor as most growing areas are receiving rains as we
approach harvest.  The Argentine gov’t said they would NOT be raising export
taxes as previously rumored.  The corn market seems to be stuck in a trading
range and with the Goldman Roll ending today, the corn market will probably
be lead out of the trading range by the May contract.  The corn market
should open lower today in sympathy with the sell off in the wheat market.
Outside are relatively quiet today.

Globex Overnight

Contract            Last      Net Change       High      Low

ZCH8                493^6    -4^0                  498^6    493^4

ZCK8                507^0    -4^0                  511^0    506^0

ZCN8                517^0    -4^6                  521^4    517^0

ZCU8                520^2    -0^2                  520^4    519^2

ZCZ8                 517^0    -3^2                  520^4    515^4

Early Opening Calls: 3-4 cents down

Top News

-- Sept Corn futures on Dalian Exchange were down 11 Yuan to 1,768 m/t
($1=7.19 Yuan)

-- Globex Corn Vol: 235,412; Pit Vol.: 72,180; Open Interest change: +7,173

-- Weather: 6-10 Day Forecast: Normal to Below Temps. Below Normal Precip.
The Corn Belt will be mostly dry today into Saturday. Sunday will see light
snow. Temps normal to below.

-- Outside markets: Energy Complex -0.10 at $92.68; Gold & Silver: -2.8 at
$905.4 & -0.080 at $17.160; US $ is slightly better vs. Euro and is better
vs. Yen

Cash Markets

-- CIF Corn up 2 to 6. Feb. +46 to +50, Mar. +47 to +50, Apr. +40 to +44,
May +44 to +47, June +40 to +44, July +40 to +44, Oct. +41 to +44, Nov. +41
to +45.

TREND:

Use a test of 4.90 to buy CH. Extend user coverage into the new crop at this
time also. WE continue to have an acreage situation here so that getting
enough new crop production could be a problem.

Try to maintain long oil and rapeseed on this small break. Oil bounced back
today on consumptive buying but meal did not give up that much rebounding
late in the day as well.

Could see the bean and corn markets actually find new buying off spread
trades against selling wheat in this inter-market correction.



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/

DISCLAIMER: Futures and options trading involve substantial risk. The valuation of futures and options may fluctuate, and as a result, clients may lose more then their original investment. In no event should the content of this website be construed as an express of an implied promise, guarantee or implication by of from the Linn Group, Inc. that you will profit or that losses can or will be limited in any manner whatsoever. Past performance is not necessarily indicative of future results. Information provided on this website is intended solely for informative purposes and is obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.

Information on this page is derived from third parties and is deemed to be reliable. STAT Communications Ltd. accepts no responsibility for errors, omissions or inaccuracies in any of the material presented on this web site. Opinions expressed on this web site are those of the respective individuals and/or institutions and do not represent the opinions of STAT Communications Ltd. or its management.