Linn Group Morning Corn Comment

CHICAGO - Dec 1/08 - SNS -- Following is the morning corn futures comment from the futures commission brokerage firm Linn Group.

The corn market opened lower and traded lower all day on the shortened
trading session on Friday.  With the shortened holiday trading session, we
saw light volume and the grain markets followed the outside markets and the
overall trend of a world wide global recession.  With the decreased volume
and the lack of interest, the grain markets just drifted lower on Friday.
The December contract closed down about 4 cents on Friday which was in the
middle of the day's trading range.  As one trader said, it isn't just the
holiday, many traders/funds are sitting on the sidelines waiting to see what
is happening in the outside markets to see how it will affect the credit
markets for commodities.  The outside markets helped push the corn market
lower as crude was lower all day until after the grains closed and it
rallied up to new day session highs.  The US$ was also much stronger which
helped push the grain markets lower as this makes US grains more expensive
to the rest of the world.  The weather in So. America remains a mixed bag as
some areas are doing great, but some areas are a little dry.  The volume was
only 114,000 contracts, not unexpected, and funds were net sellers of around
2,000+ contracts.

Overnight, the corn market opened slightly lower/unchanged and then drifted
lower most of the night before closing down about 5 cents.  Nothing has
really changed in the corn market as we are seeing a reduction in demand
which is outpacing the reduction in production.  Right now, there is no
fundamental reason for corn to rally and it is hard to build a case for a
rally until we get into next spring and we see a big reduction in acres.
There was very little news out overnight as many traders were still taking
time off.  The weather in So. America remains bearish for the grain markets
as many of the dry areas received rains over the weekend helping crops.  We
are still probably going to see a reduction in acres and yield in Brazil and
Argentina because of the trouble with the capital markets, but right now,
their crops look pretty good.  The grain markets should open lower this
morning in line with the overnight closes, maybe a little weaker, as the
outside markets have gotten worse since the grains closed with crude oil
lower and the US$ stronger.  The corn market needs to be careful as it is
now within striking distance of lows from 11/21, Dec option expiration, and
you can be probably assume there is resting sell stops down below those
lows.

 Globex Overnight

Contract            Last      Net Change       High      Low      Volume

ZCZ8                 344^0    -5^4                  352^2    344^0    736

ZCH9                360^0    -5^6                  368^4    360^0    3397

ZCK9                371^4    -5^6                  378^2    371^4    73

ZCN9                382^6    -5^6                  389^4    382^6    190

Early Opening Calls: off 3-5 cents

Top News

-- A good Russian grain crop has storage capacity nearly full in the central
regions & the gov't is looking to move about 4 mln mt of it to other areas.

-- Top shipping company estimates nearly 20% of the global bulk capesize
ships are idle after a collapse in demand from iron ore & coal.

-- Dalian May Corn futures settled 23 lower at 1,539 Yuan/mt; most other
contract months were 16 to 37 Yuan lower

-- Liffe Mar corn futures were unchanged at 120 euros/mt.

-- Globex Corn Vol: 84,870; Pit Vol.: 26,494; Open Interest change: - 8,481

-- Weather: 6-10 Day Forecast: Below Normal Temps. Normal to Below Precip.
The Corn Belt will see rain and light snow favoring eastern areas today.
Tuesday looks dry. Wednesday will see snow and light rain. Thursday and
Friday look dry. Temps normal to below.

-- Outside markets: Energy Complex -3.39 at $51.04; Gold & Silver: -37.0 at
$778.0 & -0.960 at $9.300; US $ is trading better vs. Euro & is lower vs.
Yen.

Cash Markets

-- CIF Corn steady . Nov. +34 to +37, Dec. +39 to +41, LH Dec. +43 to +46,
Jan. +32 to +34, Feb. +34 to +37, Mar. +34 to +37, Apr. +34 to +37, May +34
to +37



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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