Linn Group Morning Corn Comment

CHICAGO - Apr 9/09 - SNS -- Following is the morning corn futures comment from the futures commission brokerage firm Linn Group.

The corn market closed slightly higher on Wednesday ahead of the USDA report
Thursday morning.  The July and December contracts closed up less than 1
cent as traders positioned themselves for the report even though different
traders/analysts said don't know if there is a lot in today's report that
will affect the corn market.  The outside markets were slightly supportive,
but were also a mixed bag as crude and the Dow were slightly higher.  The
corn market is a follower right now as beans and the outside markets seem to
be leading.  Corn is still caught between good end user buying, wet/cold
weather and farmer selling.  The corn market seems to find farmer selling on
every rally.  This shouldn't be a surprise as there is a lot of grain still
left on the farm and farmers need money and time especially as they begin
the planting season in earnest later this month.  The weather picture still
remains the main feature of the corn market and there is varying opinions.
There are a couple of storms that are coming at the Midwest over the next
week which will delay planting, but the forecasts can and will change in
that time.  The volume was bigger yesterday than normal, but most of that
was spreading and funds were light buyers.

Overnight, the corn market was higher on the back of the soybean market and
the outside markets.  The July and December contracts closed about 3 cents
higher with soybean up over 15 cents.  The USDA report this morning lower
the ending stocks from 1.74 in Mar to 1.70.  Not a big drop and probably a
nothing report this morning for corn, so we will revert back to the outside
markets and the weather.  The outside markets are stronger this morning so
they should lend support.  The crude is up over $2.50 with a lot of that
rally coming after the grains had closed earlier today.  The Dow is up over
100pts which is stronger than when the grains closed, so that could lend
some support.  The weather forecasts this morning haven't changed too much
from yesterday and still show plenty of rain over the next week or so.  The
corn market will be called 3-5 higher this morning, but watch the beans for
indications of how high we are going to open.  The bean complex will be the
leader today and the outside markets which are all much stronger.  Corn will
probably run into farmer selling to day on a rally, but could find out if we
see fund buying and it can out do the farmer selling.

Globex Overnight

Contract            Last      Net Change       High      Low      Volume

ZCK9                400^4    3^4                   401^0    396^0    2474

ZCN9                410^0    3^2                   410^4    406^0    1295

ZCU9                419^6    3^4                   420^0    416^0    60

ZCZ9                 431^2    3^4                   431^6    426^6    751

Post Report Opening Calls: 4-8 cents better

Report Headline

**US Apr Corn 08/09 Carryout: 1.70 bln bu.; est. 1.73; Mar Rpt 1.740

**US 08/09 Corn for Ethanol was 3.7 bln bu vs. 3.7 bln bu in prior report

**World 08/09 Corn Carryout: 143.3 mmt; Mar Rpt 144.6

**Apr China 08/09 Corn Output: 165.5 mmt; Mar Rpt 165.5

**Apr S Africa 08/09 Corn Output: 12.00 mmt; Mar Rpt 12.00

**Apr Argentina 08/09 Corn Output: 13.50 mmt; Mar Rpt 13.50

**Apr Brazil 08/09 Corn Output: 50.50 mmt; Mar Rpt 49.50

Top News

-- China's grain & oilseed center issued their April 2009 Corn production
estimate, but they kept their estimate unchanged from the prior month at 163
mln mt, but that is down 1.6 mln mt from last year

-- Ethanol production based on Corn in 2008 added between 0.5-0.8% to US
food prices, acc. to US CBO report

-- Dalian Sep corn futures were 1 Yuan better at 1,688 Yuan/mt.($1 = 6.84
Yuan)

-- Liffe Jun corn futures were +0.75 euro better at 135 euros/mt.

-- Globex Corn Vol: 214,877; Pit Vol.: 26,773; Open Interest change: + 1,993

-- Weather: 6-10 Day Forecast: Normal to Below Temps. Normal to Above
Precip.

-- Outside markets: Energy Complex +2.05 at $51.43; Gold & Silver: +6.2 at
$887.0 & -0.081 at $12.174; US $ is better vs. Yen & is off slightly vs.
Euro.

Cash Markets

-- CIF Corn steady off 1.  Apr. +40 to +41, May +42 to +44,June +38 to +39,
July +38 to +39, Aug. +37 to +40, Sept. +37 to +39, Oct. +38 to +40, Nov.
+38 to +41, Dec. +41 to +44, Jan. +38 to +40

TREND:

Not sure there is anything coming that can affect corn and wheat too much?



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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