Linn Group Morning Corn Comment

CHICAGO - Mar 3/08 - SNS -- Following is the morning corn futures comment from the futures commission brokerage firm Linn Group.

The corn market closed mixed on Friday as the corn market looks for
direction with the soy complex continuing to make new highs and the wheat
market continuing to market new recent lows.  The May contract closed
slightly higher and the December closed slightly lower.  The corn market
continues to be the follower in the grain complex right now as there is very
little news out on the corn market, keeping that market under wraps.
Traders pointed to the soy complex and traders still unwinding the
wheat/corn spread as providing support of the corn market.  Some traders are
worried about demand slowing with the high prices as the weekly export sales
released on Thursday were not as good as past weeks and at the low end of
estimates.  Argentina weather remains a little bearish as most of the corn
growing areas are receiving rains and cooler weather which is usually good
for filling ears.  Volume was pretty good and funds bot only 1,000 contracts
on the day.  The late day run up in corn was a direct result of the bean
complex moving into new all-time new highs and the corn following it higher.

Overnight, the corn market moved higher along with the rest of the grain
complex as the bean complex continued to lead.  Bean oil traded limit up
overnight and along with a higher move in the wheat market, corn followed
the market higher.  Very little new news out overnight, but demand remains
good, just not great, at these price levels.  Traders point to spillover
buying from the higher bean complex and the outside market.  Crude oil is up
over $1 this morning and the metals markets are higher.  Traders that are
long the corn market will continue to support the corn market as long as
nothing fundamental changes.  We should also continue to see good support
from commercial accounts on breaks.  As one trader said this morning, there
just isn't any reason to sell the corn market, especially with the way the
oilseed markets are performing.

Globex Overnight

Contract            Last      Net Change       High      Low

ZCH8                553^0    7^0                   553^2    544^0

ZCK8                565^0    8^4                   565^6    555^4

ZCN8                576^2    7^6                   577^2    567^2

ZCU8                575^0    9^6                   575^0    565^2

ZCZ8                 574^4    9^6                   575^0    563^0

Early Opening Calls: 7-9 cents better

Top News

-- 150,000 mt of Corn sought by Syria in a March 18th bid tender for
delivery in the autumn

-- President of China's largest swine feed group says he expects Corn prices
to remain high, continuing to filter to high pork prices

-- March 7 is first day of Goldman Sachs commodity index roll period

-- Shipping index on the Baltic Exchange is expected to rise in the near
term, analysts point to continued demand by iron & coal shippers & the
beginning of the S American harvest will press the index upward.

-- Dalian Sept Corn futures were 50 Yuan higher at 1,856 Yuan/mt ($1=7.10
Yuan)

-- Globex Corn Vol: 183,744; Pit Vol.: 46,816; Open Interest change: -7,410

-- Weather: 6-10 Day forecast: Normal to Below Temps. Normal to Below
Precip. The Corn Belt will see rain and snow today and Tuesday. Wednesday
into Sunday looks mostly dry. Temps near to below normal.

-- Outside markets: Energy Complex +0.54 at $102.38; Gold & Silver: +13.1 at
$987.7 & +0.330 at $20.120; US $ is down slightly vs. Euro & is down vs. Yen

Cash Markets

CIF Corn steady up 1. Feb. +53 to +56, Mar. +49 to +51, Apr. +38 to +41, May
+43 to +45, June +38 to +42, July +43 to +46, Oct. +44 to +46, Nov. +44 to
+47.

TREND:

Wheat rally done? Made final counts in KC Jly on that rally early in the
week. Do not see us able to find any additional spring wheat and there could
be another squeeze on the May contract---but after that early new crop
harvest of quality hard wheat could get in the way of any squeeze. Export
trade is most likely done in spring. Will see some of the outstanding sales
still cancelled. Hard wheat will take over the trade. Strength in basis
there is a sign. If basis offers a sign---then Chi soft wheat is in trouble.
Yes LDC held on to receipts and has been a recent buyer of wheat in the
lakes but the Egypt purchase our of France is one more death knell to the
primary buyer of US soft wheat? KC should continue to gain on Chi in both
May and Jly. Look for a test of 135 in the May at a minimum. The carries in
Chi should start to widen again. Lack of deliveries in KC makes it possible
for a similar squeeze as we saw in Mpls if not to that extreme

Corn moved into new contract highs today. CK and CN taking aim on $6.00 and
possibly higher.



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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