Linn Group Morning Corn Comment

CHICAGO - Mar 6/08 - SNS -- Following is the morning corn futures comment from the futures commission brokerage firm Linn Group.

The corn market closed higher on Wednesday off the highs, but shaking off
the lower move in the soybeans and soybean oil market.  Traders said the
corn market traded almost limit up early in the session on short covering
from Tuesday and soaring prices in the outside markets, specifically crude
and gold as both made new all-time highs.  Crude oil was up over $5
yesterday by the end of the session.  The July corn closed 12 ¼ higher and
the December closed 10 cents.  Yesterday’s rally allowed the July contract
to make new all-time highs.  The soybean market, specifically the soybean
oil market came under big pressure late in the session which helped push
corn off the highs, but the market saw fund buying late that helped it
recover some of the earlier losses.  The soybean oil market has the leader
in the grain complex, but there is more talk of a lot less corn acres this
year and more bean acres and that is probably what is helping keep corn
prices firm even on breaks in beans.

Overnight, corn was strong again with the July and the December both closing
about 4 higher.  The corn market remains strong even in the face of the down
soybean markets and that is probably because of traders anticipating bigger
bean acres and smaller corn acres.  Export sales released this morning were
a little disappointing today, but not wholly unexpected because of the
higher prices and So. America beginning harvest.  Traders also pointing to
the crude market for direction with the corn.  Traders have been looking at
the crude oil market for the last year or so because of the ethanol
connection.  For the last couple of months, corn has seemed to beat to its
own path and not following crude, but that seems to have changed again.
Very little news out on the corn market right now this time of the year and
all traders seem to want to talk about is the battle for acres with beans.
Argentina and Brazil are beginning harvest and you are starting to hear from
different analysts that they are raising their yield estimates from
February.  Look for corn to open 2-4 higher today and then look for
direction.  The outside markets were higher earlier this morning, but have
sold off and we are now slightly lower in crude and the metals.

 Globex Overnight

Contract            Last      Net Change       High      Low

ZCH8                562^4    5^4                   562^6    557^0

ZCK8                571^4    4^4                   574^0    567^4

ZCN8                583^2    4^2                   586^0    580^0

ZCU8                582^0    2^4                   583^2    578^2

ZCZ8                 581^0    3^6                   582^2    577^2

Early Opening Calls: 2-4 cents better

Top News

**USDA reported private sale of 385,000 mt of US Corn sold to S Korea for
07/08 & 08/09 MY

**USDA Corn 07/08 Export Sales Net: 648,100 mt; 08/09 Net: 62,300 mt;
expected 600k-1.0 mln mt

-- Latest Conab Corn 07/08 crop estimate is 55.3 mln mt up from the Feb
estimate of 53.6 mln mt

-- US crop acreage is expected to grow by 4 mln acres in 2008, Corn crop
expect at 12.92 bln bu.; Corn for ethanol usage expected at 3.968 bln bu.
for 08/09, acc. to latest report by Univ of Missouri

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

-- CME group advisory notes Good Friday holiday falls on March 21, 2008, the
third Friday of March (the traditional March quarterly expiration date),
subsequently all March 2008 Equity index futures and options will expire on
Thursday, March 20, 2008 instead of Friday, March 21, 2008.

-- Dalian Sept corn futures rose 16 in overnight trade to 1,868 Yuan/mt on
just over 1 mln contract trading

-- Globex Corn Vol: 253,934; Pit Vol.: 29,999; Open Interest change: +4,057

-- Weather: 6-10 Day forecast: Normal to Below Temps. Normal to below
Precip.The Corn Belt will be mostly dry today. Friday will see some snow in
the central and eastern areas Saturday into Monday looks mostly dry. Temps
normal to below.

-- Outside markets: Energy complex +0.15 at $104.67; Gold & Silver -0.5 at
$987.5 & -0.205 at $20.481; US $ is down vs. Euro & Yen

Cash Markets

-- CIF Corn steady up 2. Mar. +35 to +36, Apr. +32 to +36, May +37 to +40,
June +33 to +37, July +36 to +41, Oct. +38 to +41, Nov. +38 to +42.

TREND:

It is very hard to maintain a hard stance in just how far the rally in these
markets can go. This trade over the last two days has been skewed by the
closing of a fund? Will the signals be lasting or will fundamental ideas
take the break on in scaled down pricing?

Too big for me---but I do not think the highs are in yet. Look for this
break to stabilize and develop legs again. One thing is for sure---my cycle
gurus are telling me that the markets will make those highs late in Mch.

Basis weakness in spring and higher protein hard wheat has been instrumental
in the weakness showing in those markets.

Move started to gain momentum in buying corn and selling beans today.
Understand this happening with stronger crop developments in So Amer and the
growing bean acres in the US.



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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