Linn Group Morning Corn Comment

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

The corn market rallied to new highs on Wednesday as corn prices flirted
with the $6 level as traders pointed to adverse fund conditions and fund
buying coming back into the grain markets.  The May, July, and December all
closed up at least 10 cents with the July and December closing over $6.00.
Traders pointed to rain in the south as delaying plantings at a time when
corn acres are estimated to already be low and ending stocks were lower than
expected.  Volume was moderate/heavy as we almost approached 300,000 again
and funds were net buyers of 7,000 contracts.  Weather forecasters are
predicting rain down in the southern areas again this weekend and next week
when farmers need the fields to dry out so they can get corn planted.  It
also remains cooler than normal in the rest of the Midwest at a time when
the ground needs to start to warm up.  Traders also pointed to technical
buying yesterday and a general lack of sell orders for most of the day.

Overnight the corn market was pretty quiet, but it did close higher as the
prospects of the wet weather delaying plantings.  The July and December
contracts closed 1-2 higher near the highs for the night after the corn was
lower around 10:30-11 last night.  Combined weekly export sales this morning
were above expectations.  Analysts estimated export sales of 550,000 to
750,000 and actual combined sales were 945,000.  This number will be
supportive to the corn market but will be quickly forgotten after the
opening as traders will continue to concentrate on the weather and the
forecast for rains.  The forecast this morning has the showers moving south
out of the heart of the Midwest and down into the Ohio River Valley which is
trying to plant corn right now and doesn't need anymore rain.  The strike in
Argentina has been put on hold for 30 days while the two sides talk about
reducing the export tariff's, but now there is talk that Brazil could have
problems as dock workers have started a work slow down and are talking about
striking.  Corn should open higher this morning in-line with overnight
closing and then look for direction.  Outside markets are a little lower and
the US$ is a little stronger this morning.

Globex Overnight

Contract            Last      Net Change       High      Low

ZCK8                597^4    1^6                   598^6    593^4

ZCN8                611^2    2^0                   612^0    606^4

ZCU8                610^0    2^2                   611^0    605^6

ZCZ8                 604^4    1^4                   606^0    600^4

ZCH9                612^0    3^4                   612^0    606^6

Early Opening Calls: 1-2 cents better

Top News

**USDA Corn 07/08 Export Sales Net: 704,400 mt; 08/09 Net: 241,300 mt;
expected 600-800k mt

-- Apr 15 is deadline to submit bids in a 100,000 mt Barley tender floated
by Jordan. Delivery for 50k mt is expected in FH May & the balance in LH May

-- Port authorities at Brazil's Paranagua port say dock workers began a
strike on Wednesday, noting trucks ready to dump loads were backing up
outside the port area.

-- Analyst forecast Ukraine's exports of grain in March totaled 773,600 mt
vs. Feb.'s 176,084 mt. Its March break down included 349,500 mt of Corn,
136,900 mt of Wheat & 241,400 mt of Barley, acc. to UkAgro

-- CME Group announced it will offer electronically traded options on
futures contracts in Corn, Soybeans, Soymeal, Soyoil, Wheat, Oats, & Rough
Rice side by side during day-time open outcry trading hours beginning April
14, 2008.

-- Dalian Sept Corn futures were 2 lower at 1,773 Yuan/mt, while the rest of
the complex was mostly unchanged

-- Globex Corn Vol: 242,348; Pit Vol.: 36,800; Open Interest change: +16,296

-- Weather: 6-10 Day Forecast: Normal to Above Temps. Normal to Above
Precip. The Corn Belt will see showers and thunderstorms moving west to east
today and Friday. Saturday into Monday looks dry. Temps normal to below.

-- Outside markets: Energy Complex -0.73 at $104.10; Gold & Silver: +0.7 at
$895.5 & -0.097 at $17.075; US $ is better vs. Euro & is slightly better vs.
Yen

Cash Markets

-- CIF Corn off 3 . Apr. +37 to +42, May +40 to +44, June +35 to +36, July
+38 to +40, Oct. +40 to +45, Nov. +40 to +44, Dec. +43 to +48

TREND:

Wheat bounced off the oversold conditions and maybe off the talk of
insurance adjusters looking at hard wheat acres---do not think this follows
through very far already up into resistance in the Jly contract at
9.50-9.60.

Corn continues to gain but took a back seat to short covering today. Still
see CK going to 6.20-6.30. There was a marked increase in farmer selling in
old crop corn today that may have been part of the reluctance to rally much
more than 10 cents. $6.00 is a magic number.



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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