Linn Group Morning Corn Comment

CHICAGO - Apr 4/08 - SNS -- Following is the morning corn futures comment from the futures commission brokerage firm Linn Group.

The corn market rallied to new all-time highs yesterday with fund buying and
worries about wet weather delaying corn processing. The May and July closed
at least 4 cents higher and the December closed over 7 cents as each month
closed at $6.00 or higher.  The corn market made the highs around 12 noon
and then found some profit taking, actually trading 3-4 lower, but it
recovered into the close to close near the highs.  The rain continues to
fall across most of the Midwest and southern areas again and the forecast
has more rain over the next week or so.  Now that we have the USDA report
behind us, traders have focused their attention on the weather and getting
corn in the ground.  There is still plenty of time to get corn planted, but
it is still a worry because the stocks are low and we are expected to plant
a lot less acres than last year.  Weather, low stocks, and fund buying will
help hold corn higher and prevent any big sellers in corn.  Traders said it
will be difficult to sell corn until they start getting some corn planted.
Volume was moderate, not as big as the last couple of days, but still
strong.  Funds were buyers again today, buying 5,000+ contracts at the end
of the session.

The corn market overnight closed a little lower as the market was pretty
quiet for the first time in it seems like months.  The May, July and
December contracts all had app. a 3 cent trading range.  Very little news
out this morning as the market continues to watch the weather forecasts and
rests after the way it has been trading the last month or so.  The corn
market should be well supported because of the wet/cold weather across most
of the Midwest and the lower acreage estimate by the USDA.  The corn market
is expected to open a little lower today and I expect the market to find
buying on any attempt to sell the corn market off early in the session.  We
might see some profit taking early, but it will be a surprise to see selling
late as most traders will not want to go home over the weekend with a short
position.  Keep one eye on the mid-day weather forecast to see any change in
the rain situation.

Globex Overnight

Contract            Last      Net Change       High      Low

ZCK8                598^6    -1^2                  599^6    596^0

ZCN8                612^2    -1^2                  612^6    609^2

ZCU8                613^0    -1^0                  614^0    611^0

ZCZ8                 609^4    -0^6                  610^0    606^6

ZCH9                616^0    0^0                   616^0    613^6

Early Opening Calls: steady, easier

Top News

-- Chair of the Senate Ag committee said a proposal to limit the amount of
acres enrolled in the CRP program to 32 mln acres is down from the current
cap of 39 mln acres.  Currently there are 34.7 mln acres in the program.

-- Ship loading reportedly has resumed in Brazil's Paranagua port, acc. to a
senior union official & confirmed by a local shipping agent

-- Mississippi River lock & dam #25 repairs scheduled to begin Mar 31 will
stop north & south bound barge traffic for up to 8 days, acc. to US Army
Corp of Engineers.  The lock & dam is 60 miles north of St Louis.

-- 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.

-- 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

-- China's Dalian Futures exchange was closed on Friday

-- Globex Corn Vol: 197,718; Pit Vol.: 27,911; Open Interest change: +3,217

-- Weather: 6-10 Day Forecast: Normal to Below Temps West, Above Temps East.
Above Normal Precip. Showers will be ending in the eastern Corn Belt later
today. Saturday into Monday looks dry. Tuesday rain moves west to east.
Temps normal to below.

-- Outside markets: Energy Complex +0.61 at $104.44; Gold & Silver: +3.3 at
$908.2 & -0.075 at $17.360; US $ is slightly better vs. Yen & is slightly
easier vs. Euro

Cash Markets

-- CIF Corn steady off 2. Apr. +39 to +42, May +41 to +45, June +34 to +36,
July +38 to +42, Oct. +40 to +45, Nov. +40 to +44, Dec. +45 to +48

TREND:

The wheat market spent all day trading in a 15 cent trading range. The
market was not able to stay down even when it broke out of the trading range
to the down side. This is the third day of more stable trade. Is 50 cents
off the recent lows and into resistance on small rallies. Feels like very
limited upside potential unless driven by news of frost or wheat being
abandoned in the hard wheat belt. Remain long KC and short Chi. Also trying
to stay long corn and short wheat but wheat is not cooperating.

Some people looking at the Mpls May spreads starting to gain again --- must
have had 20 questions today about who was stuck this time?

Corn continues to chew into new contract highs daily. See no end to this
yet. Upside counts on CK are 6.38. Come away from length over 6.20 but not
sure I would want to get short. Farmers should use this round of buying to
market most of what is left of old crop but would certainly be limited in
new crop marketing. No need to do more than 25 to 30 pct on a trade over
6.20.



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/

DISCLAIMER: Futures and options trading involve substantial risk. The valuation of futures and options may fluctuate, and as a result, clients may lose more then their original investment. In no event should the content of this website be construed as an express of an implied promise, guarantee or implication by of from the Linn Group, Inc. that you will profit or that losses can or will be limited in any manner whatsoever. Past performance is not necessarily indicative of future results. Information provided on this website is intended solely for informative purposes and is obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.

Information on this page is derived from third parties and is deemed to be reliable. STAT Communications Ltd. accepts no responsibility for errors, omissions or inaccuracies in any of the material presented on this web site. Opinions expressed on this web site are those of the respective individuals and/or institutions and do not represent the opinions of STAT Communications Ltd. or its management.