Linn Group Morning Corn Comment

CHICAGO - Apr 9/08 - SNS -- Following is the morning corn futures comment from the futures commission brokerage firm Linn Group.

The corn market closed slightly higher to unchanged for December as the corn
market seemed to be in consolidation mode yesterday after the sell off on
Monday.  The May and July corn both closed 1-2 higher, but the December
closed unchanged after leading the corn market the last couple of days.
Traders seemed to be taking a break after the recent big moves in the corn
market as traders continue to watch the weather forecasts for a break in the
recent rain pattern to allow farmers to start to plant corn in earnest.  One
weather model currently shows a window to start planting corn next week, but
another model shows continued rain showers across the Midwest.  Volume was
pretty big, but most of it continues to be spread trade as traders roll out
of the May contract.  Crop progress report that came out on Monday didn't
have anything on corn, a sign that corn planting is behind in the south and
in the southern Midwest.

Overnight, corn was higher as traders continue to worry about the cold/wet
weather, the reduction in corn acres and the release of the USDA report this
morning.  Competing weather models are at odds on the 2nd week of the
current forecast showing a window of drying to allow farmers to start
planting corn.  One model shows the drying opportunity, the other model
shows continued rain.  This will become very important as over the next
couple of weeks, Illinois should start to plant corn in earnest.  The USDA
released the S/D report this morning which further lowered the corn stocks
number which was lowered last week as well.  The current report showed an
increase in the export numbers even at the higher prices.  This further
reinforced the talk that corn prices, even at record levels, are not high
enough to curb demand.  Calls this morning will be higher from 5-15 higher
depending on who you talk to, but it should put corn into new all-time highs
and find buy stops so that could push it even higher.  The interesting part
will be if we find any selling pressure on a much higher corn market.  After
we get through the opening, traders will look to the weather forecasts to
see if farmers are going to be get into the fields next week to start
planting corn.

Globex Overnight

Contract            Last      Net Change       High      Low

ZCK8                597^4    6^2                   598^0    592^0

ZCN8                610^2    6^0                   611^0    604^4

ZCU8                613^2    5^2                   613^6    608^0

ZCZ8                 609^0    5^4                   609^4    603^4

ZCH9                616^4    4^2                   616^4    611^2

Opening Calls (post rpt): 10-15 cents better

Top News

**US Apr Corn 07/08 Carryout: 1.238 bln bu.; est. 1.32; Mar Rpt 1.438

**World 07/08 Corn Carryout: 103.0 mmt; Mar Rpt 104.0

**Apr China 07/08 Corn Output: 145.0 mmt; Mar Rpt 145.0

**Apr S Africa 07/08 Corn Output: 11.0 mmt; Mar Rpt 11.0

**Apr Argentina 07/08 Corn Output: 21.5 mmt; Mar Rpt 21.5

-- French Corn ending stocks forecast were 3.3 mln mt nearly inline with the
March estimate & above last year's stocks by 70%, acc. to France stats
office ONIGC

-- Dalian Corn futures settled 1 lower at 1,882 Yuan/mt basis the Jan
contract

-- Globex Corn Vol: 242,521; Pit Vol.: 37,332; Open Interest change: -447

-- Weather: Normal to Below Temps. Normal to Above Precip. Rain ends in the
eastern Corn Belt today. Thursday will see rain and thunderstorms start in
the west and move east Friday. Saturday looks dry. Sunday will see light
showers. Temps below normal.

-- Outside markets: Energy Complex -0.08 at $108.42; Gold & Silver: -8.7 at
$906.1 & +0.063 at $17.772; US $ is down slightly vs. Yen & Euro

Cash Markets

-- CIF Corn steady off 1. Apr. +38 to +40, May +41 to +43, June +34 to +39,
July +38 to +42, Oct. +41 to +45, Nov. +41 to +46, Dec. +43 to +48

TREND:

The small correction in the corn/wheat spreads today may have been as good
an opportunity as you get to be involved. The bean carry spreads also
corrected. This may have been encouraged by the firming domestic bean basis.
Also willing to fade this trade. The So Amer stocks are still there and the
argument for tightening old crop supplies is muted. The SX has led the bean
gains for the last 6 days as the bean spreads have weakened. This 12 to 13
cent bounce today was the first correction and chance to get anything done.

Do not feel corn will correct very deeply---but at $6.00 could see a 30 to
50 cent break to correct the overbot conditions and still be a bull market.

Wheat has demand developing again and US wheat appears competitive. Could
stabilize the trade for a while but wheat window of opportunity is rapidly
closing. Rallies will be small but as in corn above carry farther due to the
price levels trading.



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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