Linn Group Morning Corn Comment

CHICAGO - Mar 12/08 - SNS -- Following is the morning corn futures comment from the futures commission brokerage firm Linn Group.

The corn market closed higher on Tuesday but well off the highs as we saw
some selling pressure late in the session from the soy complex.  The May,
July, and December contract closed over 6 cents higher, but all three months
were up 10-13 cents earlier in the session.  The USDA supply/demand report
released by the USDA before the market opened was neutral for corn, but it
was bullish for the soy complex and wheat and those markets were higher
early in the session.  The grain complex was really led higher by Chicago
wheat with it trading higher from the beginning of the day and then closed
limit up after trading as much as 20-30 cents higher than limit via options.
Traders also pointed to the crude oil market as helping push corn higher as
crude made another all-time high and a new high close.  Corn and crude have
been linked because of ethanol and when there is a lack of fresh news,
traders always keep an eye on the crude market.  Volume was moderate/heavy
and funds were net buyers of 7,000 contracts.

The corn market was lower overnight on profit taking and little new news on
the corn market.  The corn market really needs positive news to continue to
move higher, especially with So. America harvest continuing.  Traders have
said that the corn in So. America is still more expensive that US corn, but
we have seen weekly export sales disappoint the market the last couple of
weeks.  The fundamentals of the corn market haven't changed and we are
seeing price direction being dictated by money flowing into and out of the
commodity markets.  The corn market continues to be very choppy and that
will probably continue until we get the USDA report on March 31st showing
planting intentions.  Traders will continue to look at the outside markets
and the other grain markets for direction.  Right now, traders want to point
to the funds and outside markets as the big influence on the corn market.
We look for the corn market to open lower today in-line with the overnight
markets, down 3-5.  The market will look for direction from other markets.

Globex Overnight

Contract            Last      Net Change       High      Low

ZCH8                551^0    -13^0                 562^0    551^0

ZCK8                568^2    -4^2                  572^6    561^0

ZCN8                579^6    -4^6                  584^6    573^0

ZCU8                580^2    -6^2                  585^0    573^2

ZCZ8                 580^4    -5^0                  585^0    572^4

Early Opening Calls: 3-5 cents down

Top News

-- Argentine gov't official says soybean export tax raised to 44% a 9% pt
increase from the current 35%, sunseed export tax is rising to 39% from the
current 32%, while Wheat & Corn export taxes were lowered by 1% point.

-- 48,000 mt of Corn buy tender issued by group of Israeli millers & the
origin would likely be S American or US, bid deadline is March 12th &
delivery was expected in June

-- CBOT March Corn Delivery Data: 561 total

-- Dalian Corn futures for Sept delivery were 13 Yuan lower and settled at
1,821 Yuan/mt.

-- Globex Corn Vol: 221,523; Pit Vol.: 31,063; Open Interest change: +569

-- Weather: 6-10 Day Forecast: Normal to Below Temps. Normal to Above
Precip. The Corn Belt will be dry today. Thursday will see some light
showers in the east. Friday and Saturday will see some rain or snow. Sunday
looks dry. Temps near normal.

-- Outside markets: Energy Complex -0.24 at $108.51; Gold & Silver: +2.1 at
$978.2 & +0.013 at $19.692; US $ is lower vs. Euro & Yen

Cash Markets

-- CIF Corn steady off 1. Mar. +40 to +42, Apr. +38 to +41, May +42 to +45,
June +37 to +41, July +42 to +45, Oct. +41 to +45, Nov. +42 to +46.

TREND:

Corn moved into new highs and has all the ear marks of a market that wants
to go higher. It is bothersome that it is so methodical when all the other
markets are zipping around? Support 5 to 10 lower and new highs every day or
so until we put a 6 on the font of this market. The big story continues to
be the lack of supplies from other origins and the concern about reduced US
acres. Makes this a story that hangs around for a while.

Interesting that canola was able to leave the one day island of yesterday's
trade. Suspect it is indeed tied to new China buying interest. If we leave
the trade from today with higher prices tomorrow could see this market back
at the highs and higher by the end of the month. Counts are still 880 there.



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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