Linn Group Morning Corn Comment

CHICAGO - Feb 15/08 - SNS -- Following is the morning corn futures comment from the futures commission brokerage firm Linn Group.

The corn market moved higher on Thursday on the back of gains in the soy
complex and wheat markets.  The oilseeds and the wheat are leading the grain
markets higher and the corn is being dragged higher on the lack of news.
The March contract closed 14 cents higher and the July and December closed
over 13 cents higher.  The real story, besides MN wheat, is the oilseeds,
specifically bean oil and rapeseed.  The oilseed markets are on fire and
some traders talking about these markets just getting started depending on
the damage to China's crop by this winter storm.  It is tough to get
accurate information out of China, but the damage seems to be severe.  The
corn market was also pulled higher by the crude oil market which was up
almost $2.00.  The weekly export sales released before the opening on
Thursday were strong and within the estimated ranges.  Volume was strong
again on Thursday and funds were net buyers of 7,000+ contracts on the day.

Overnight, the corn market continued to move higher following the wheat and
soy complex.  Outside markets are also higher with crude oil up almost $1.00
this morning.  The weather in So. America remains good and should help late
filling ears, but the story today isn't supply, but demand.  The demand for
corn and all grains is high and you can't get enough acres.  Corn prices
will continue to be strong as they compete for acres.  Today, the corn
market will look to the other grain markets for direction.  The wheat market
was very strong overnight with the March MN wheat up over $1.  Yes, I said
up over $1.  Breaks in corn seem to be well supported, but it will be tough
to find traders willing to step out and buy new highs in the corn market
unless the rest of the grains are higher.  Corn should open higher this
morning in-line with where the market closed overnight.  There is very
little news out on the corn market this morning, so look to the other grain
markets for direction.

Globex Overnight

Contract            Last      Net Change       High      Low

ZCH8                513^6    2^6                   515^0    510^4

ZCK8                525^6    3^0                   527^0    522^2

ZCN8                537^6    4^4                   538^0    533^2

ZCU8                537^0    3^6                   537^0    533^0

ZCZ8                 537^2    5^0                   537^2    531^6

Early Opening Calls: 2-3 cents better

Top News

-- Dalian Corn Sept futures rose 2 Yuan to 1,797 Yuan/mt on volume of
542,488 contracts

-- Globex Corn Vol: 186,676; Pit Vol.: 33,368; Open Interest change: +2,904

-- Outside markets: Energy Complex +0.37 at $95.83; Gold & Silver: +3.2 at
$910.4 & +0.202 at $17.455; US $ is lower vs. Euro and Yen

TREND:

Make no mistake---the new market is an oilseed and vegoil trade. Would have
to assume the gap into new contract highs in both canola and soyoil could
find some resistance for a minute but instead feel this is the beginning of
a new leg that could be extended. Not to be fooled with. Maintain ownership
and add to on any inter day 100 to 150 point break in soyoil. Targets 62 to
64 cents. Targets for canola push $880.

Wheat has moved into the first level of resistance. Not sure it is worth the
risk but back to the short side in Chi on the rally today. Buying corn
against those shorts this morning did not give a whole lot of protection but
feel this is also the right trade. Just have to have the money and the
stomach to stay with the trade in these big swings

Corn ran into resistance into the reversal trade of last week. Lot of
traders willing to sell into that area. Buying corn at 5.10 over the last
couple of weeks has not made anyone any money. Suspect the option trade
again causes it to set back some and test 5.00 again. So why did I stay long
tonight? Just a feeling that this time it might be for real?



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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