Linn Group Morning Corn Comment

CHICAGO - Apr 11/08 - SNS -- Following is the morning corn futures comment from the futures commission brokerage firm Linn Group.

The corn market saw profit taking on Thursday after the rally to new highs
on Wednesday, lower than expected weekly export sales, and weather forecasts
for better planting weather over the next 2 weeks.  Weekly export sales were
on the low side of expectations which may be showing that we have reached
prices that is making corn too expensive, but one week doesn't make export
sales go away.  Remember, if you want guaranteed sales, you have to come to
the US with all the problems that have been happening in So. America.
Traders also pointed to corn being over bot with the recent rally and due
for a correction, but they did point out that any correction in corn will
probably be short lived because of low stocks and not much corn in the
ground yet.  The weather forecasters continue to be the most popular person
in every trader's office as they watch for better weather to get corn in the
ground.  I don't think there is any question corn will get planted and
probably in a timely fashion.  With today's technology, farmers can plant a
lot of corn very quickly.  As much as farmers need the ground to dry out, we
need warmer weather and it is forecast to happen, but remember, it is only a
forecast.  Volume was big on Thursday with much of that coming in spreading
out of May into July and December and funds sold 3,000+ at the end of the
day.

Overnight, the corn market closed slightly higher near the highs after
trading lower earlier in the session.  The May, July, and December corn all
closed 1-2 higher after being 3+ lower.  The corn market is waiting to see
how the weather forecast plays out in the coming weeks, but again this
morning, the private forecasters are saying that we are going to see much
dryer weather and above normal temps for the next 2-3 weeks.  This has been
widely talked about the last couple of days so this shouldn't come as a
surprise and was probably part of the reason for the sell off yesterday.
Traders will look for better weather to break corn, but it should be well
supported because of the low stocks and the lower acreage estimate.  Traders
also pointing to corn still having to compete for acres and that will help
keep prices higher and it will bring about buying when the market sells off.
The USDA announced this morning that So. Korea bot 165,000 tones of US corn
overnight  showing the market that maybe US corn isn't too expensive and the
world will still be coming to the US for their corn needs.  The situation in
Argentina and Brazil makes countries nervous when they have to have corn.
The corn market should open higher today in-line with the overnight markets
and then look for direction.  You could see more spreading today and traders
will probably looking to position themselves for the weekend when weather
forecasts can change and really affect the markets.  The risk right now is
to the downside if the weather maps over the weekend confirm current
forecasts of better planting weather.

Globex Overnight

Contract            Last      Net Change       High      Low

ZCK8                597^0    2^6                   598^0    591^0

ZCN8                609^4    2^0                   611^0    604^2

ZCU8                615^6    1^4                   615^6    610^4

ZCZ8                 612^6    1^4                   614^0    606^4

ZCH9                621^4    2^2                   622^0    617^4

Early Opening Calls: 2-4 cents better

Top News

-- Three tranches of 55,000 mt of US Corn bought by S Korean feed mill group
on Friday. Delivery was expected in mid August through mid October. Traders
say 110k mt was 287c over Sept CBOT futures, 55k was 290c over Dec CBOT
futures

-- Chinese customs data shows 1Q 2008 Corn exports were only 80,000 mt, a
drop of 97% from the same quarter a year ago. Soybean imports rose 36% in 1Q
2008 vs. 1Q 2007 to 7.78 mln mt

-- 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 trade
date 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

-- Jan Corn futures in overnight trade on the Dalian exchange rose 13 to
1,909 Yuan/mt

-- Globex Corn Vol: 283,859; Pit Vol.: 49,663; Open Interest change: +5,218

-- Weather: 6-10 Day Forecast: Normal Temps East, Above West. Normal to
Below Precip. The Eastern Corn Belt will see rain ending while the northern
areas is will see snow and rain today. Sunday will see some light rains in
the east. Monday into Wednesday looks dry. Temps below normal. A frost or
freeze is forecast over the weekend in the Plains, Midwest and northern
Delta.

-- Outside markets: Energy Complex +0.22 at $110.33; Gold & Silver: +2.7 at
$934.3 & +0.051 at $18.099; US $ is down vs. Euro & Yen

Cash Markets

-- CIF Corn steady. Apr. +33 to +36, May +35 to +40, June +31 to +35, July
+35 to +39, Oct. +40 to +45, Nov. +41 to +45, Dec. +43 to +48

TREND:

Corn certainly gave up easy. However, there is not a lot of down side to
this trade. Users take note and cover needs for the balance of the summer at
a minimum on a test of 5.90 to 5.95 in Jly.

Wheat is still the weakest leg and has to weaken to corn---still has $2.00
to go---may come on a rally back in corn but most likely happens on further
weakness in wheat. Stay tuned



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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