Linn Group Morning Corn Comment

CHICAGO - Apr 30/08 - SNS -- Following is the morning corn futures comment from the futures commission brokerage firm Linn Group.

The corn market slipped back after making new highs in the December contract
as traders seemed to shake off the lack of planting progress as the US$
rallied and there was talk in the media that the rally in the grain markets
could be over if the US$ continues to rally.  Some will look at this as a
stretch to explain the sell off in the corn today after very bullish
planting news, but a big part of the reason for the price increase in grains
is because of the weak US$.  Yes, demand has increased tremendously, but a
weaker US$ could be just as significant.  After making new highs yesterday,
corn sold off, closing over 9 cents lower, 15-20 cents off the highs.  The
close was terrible technically, and if confirmed the next couple of days
could be a key reversal.  Planting delays are still very big with most
farmers I have talked to that are planting are skipping around to find a
field that is fit to plant.  Weather remains bullish as most of the Midwest
is expected to remain cool and receive rains over the next 5-7 days.  The
extended forecasts look drier, but everyday farmers don't get corn in the
ground, the better chance of a reduction in yield.  Volume was huge at over
400,000 contracts and funds sold 5,000 contracts.

Overnight, the corn market was very quiet and didn't get the follow through
selling that some traders after the close wanted to talk about for the night
session.  The corn market closed slightly higher, up 1-2 cents.  The weather
forecast this morning didn't change much from yesterday and maybe even got a
little wetter for the weekend, with bigger rain totals for some areas that
are already wet.  The market seems to be shaking off the latest planting
delays, probably telling the market that planting delays are already built
into corn prices.  In talking to traders, they will say that is a lot harder
to get the market upbeat on a rallying $6 corn than it was in rallying $4
corn.  This sounds simple but it has some truth to it.  Ask yourself, are
your willing to buy $6 corn in case it goes to $7-$8-$9 or are you willing
to take your $6 corn and go home with big profits?  A lot of negative media
coverage on the grain markets right now, with some talk of money coming out
of commodities and back into the stock market.  The corn market having
trouble rallying on seemingly endless stream of positive news is probably
negative and could be telling us that not only is the news already built in
the corn price, but maybe there are other market forces at work.  It is hard
to rally corn into these already high corn prices in April/May!!  The corn
market should open in-line with the closes overnight and we could see a pull
back, but this market could be explosive.

Globex Overnight

Contract            Last      Net Change       High      Low

ZCK8                592^4    1^2                   596^0    591^2

ZCN8                604^6    0^2                   608^6    604^0

ZCU8                616^2    1^4                   617^6    614^6

ZCZ8                 622^4    0^4                   626^0    621^2

ZCH9                631^4    0^0                   635^2    631^4

Early Opening Calls: 1-2 cents better

Top News

-- Philippine 1Q corn production rose to 2.17 mln mt a jump of 27% from the
same quarter a year ago, acc. to Ag ministry officials.  Area harvested have
risen by 10% to 711,000 ha vs. same period last year.

-- 75,000 mt of Feed Barley was purchased on Wednesday by Jordan's state
grain arm, in a tender originally set for 100,000 mt.  Traders note prices
were between $343-$358/mt & delivery was expected in June

-- Largest fertilizer importer in India concluded a deal for yearly imports,
but their price nearly doubled from last year's price

-- Apr 29th is the bid deadline in Turkey's state grain buyers 150,000 mt
Corn tender, announcements are usually made a day or 2 after tender is
finalized.

-- Corn futures overnight on the Dalian Exchange were lower.  Active January
futures fell 6 to settle at 1,963 Yuan/mt

-- Globex Corn Vol: 331,741; Pit Vol.: 87,318; Open Interest change: -
20,664

-- Weather: The storm system advertised for today into the weekend looks a
little weaker and possibly will be a little faster moving helping to reduce
some of the interruptions to fieldwork

-- Outside markets: Energy Complex +0.33 at $115.96; Gold & Silver: -4.0 at
$873.0 & +0.153 at $16.656; US $ is slightly better vs. Euro & is better vs.
Yen.

Cash Markets

            Bean Barge       Corn Barge        SRW Barge       HRW Track
Ill Riv Frt

Apr       +43/48 K           +31/32 K             -5/+5 K
410

May      +43/47 K           +34/35 K           -60/-50 N            +75/   N
410

Jun       +37/42 N           +33/36 N           -85/-70 N           +75/   N
420

Truck                Beans   Corn     Wheat   Meal Hi-pro        Oil

Chicago                       -15 K    -5 K     -100 K

Toledo              -15 K    -17 K    -50 K

Dec ILL            -18 K    -8 K                  -10 K              -150 K

TREND:

Wheat gave us a chance to buy KC vs. Chi one more time as it traded 30 on
the open. Liquidate on a test of 48-50 KC over in July contracts. In case I
forget to say it later---do not press this Chi July contract past 7.50. Come
away form shorts and come away from corn/wheat on a trade to that level as
well.

Corn now has a technical signal that says be careful. Expect to see this
contract trade down to test the April lows. Seasonal tendency and needs
something to feed the bull---it will surface. Out of longs is okay but I
will not be short this market.



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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