Linn Group Morning Corn Comment

CHICAGO - Nov 25/09 - SNS -- Following is the morning corn futures comment from the futures commission brokerage firm Linn Group.

The corn market closed lower on Friday on pressure from the outside markets,
lack of new fundamental news and farmer selling.  The December contract
closed down about 4 cents as corn traded lower all day, but in a relatively
quiet day.  Friday was option expiration with over 730K options expiring,
mostly worthless, so now we should see what corn is made up and whether or
not it has legs to go higher.  The trading on Friday was pretty lack luster
with many big option traders just trying to manage positions into the
expiration.  The weather over the weekend seemed to be pretty good for
harvest, but that turns later this week as most of the Midwest starts to get
cold with the chance of rain and snow in some areas.  The USDA announced on
Friday that Mexico was buying 700K mt of US corn which was positive but
didn't seem to help the market as they are a regular US corn customer and
wasn't looked upon as a surprise.  The market also continues to hear about
fund money coming into the commodity markets at the end of the year or the
beginning of next year which helping to keep the markets supported.  The
volume was decent at 208K contracts and funds were sellers of about 5,000
contracts.

Overnight, corn moved higher on the back of the soybeans and helped from the
outside markets.  The December contract closed up about 6 cents overnight,
near the high of the session as soybeans closed about 20 cents higher and
the outside markets were supportive.  The crude oil was up almost $1, the
US$ was down about 60 points and stocks were higher.  As different
traders/analysts had suspected, once corn was thru the option expiration, it
is free to move higher.  Corn had to close below $4 strike price to make the
most money for the short sellers and now corn is free to go higher without
interference.  The corn market will continue to find support on breaks from
end users and funds.  The corn market should start strong today and then
look to see if it can hold the gains.  Corn still needs to take out the
highs from October and close higher to continue the rally.  The outside
markets are supportive this morning, but like the grain markets, the Dow,
crude, and US$ can't seem to build any momentum.  After today and tomorrow,
we should see a pretty quiet week with the holiday on Thursday, but
sometimes the lower volume and lack of traders can create extreme moves.
Some traders also are looking for a price direction change around
Thanksgiving.

Globex Overnight

Contract            Last      Net Change       High      Low      Volume

ZCZ9                 397^2    6^2                   398^4    390^0    6694

ZCH10              412^6    5^6                   414^0    406^0    5391

ZCK10              422^2    5^2                   423^2    415^6    342

ZCN10              430^0    4^4                   431^6    424^4    317

Early Opening Calls: 4-6 cents better

Top News

-- On late Friday afternoon, the Argentine gov't released their 09/10 Corn
area planted estimate: 3.06 mln ha down 0.43 mln ha from 08/09 season

-- Analysts said on Monday that the Philippines could import as much as 3
million tons of the grain next year after local crops were damaged by
typhoons

-- Friday's USDA Cattle On Feed Nov 1: 101%; expected 102%; prior month 101%

-- Friday's USDA Cattle Placements during Oct: 101%; expected 103%; prior
month 105%

-- Friday's USDA Cattle Marketings during Oct: 97%; expected 97%; prior
month 96%

-- Friday's USDA Cold Storage Oct 31: Pork Bellies: 37.006 mln lbs; expected
35.9 mln lbs; prior month 38.286 mln lbs.

-- Friday's USDA Cold Storage Oct 31: TTL Pork Stocks: 520.13 mln lbs;
expected 540.0 mln lbs; prior month 531.87 mln lbs.

-- Friday's USDA Cold Storage Oct 31: TTL Beef Stocks: 426.36 mln lbs; prior
month 428.91 mln lbs

-- Friday's USDA Cold Storage Oct 31: FCOJ: 1.115 bln lbs; prior month 1.218
bln lbs

-- Pending Tender: Japan's Ag Ministry also announced 100,000 mt SBS feed
Barley tender, with bids due by Nov 18th

-- Liffe Jan corn futures were +0.75 euro better at 136.00 euros/mt.

-- Active May Dalian corn futures rose 12 yuan/mt to settle at 1,778
yuan/mt.  Other contract months were 7 to 12 yuan higher also

-- Globex Corn Vol: 170,723; Pit Vol.: 19,568; Open Interest change: -
34,140

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

-- Outside markets: Energy Complex +1.11 at $78.58; Gold & Silver: +17.8 at
$1164.6 & +0.290 at $18.730; US $ -0.590 at $75.140

Cash Markets

-- CIF Corn steady off 3.  Nov. +45 to +48, Dec. +47 to +49, Jan. +38 to
+40, Feb. +39 to +42 ,Mar. +39 to +42, April +38 to +40, May +38 to +40,
June +38 to +40, July +38 to +40

TREND:

Corn had a pretty narrow range on the week. The Dec options expired Fri with
the most ever into expiration. Over 735 thou contracts with most of them
near worthless. The 3.90 strike won out over the heavier 4.00 strikes so
there had to be some adjustments to positions at the end of the week. The
long term charts are still favorable for more rally here and will encourage
buying on weakness. The target remains the 4.13 highs shown above. Taking
that out could push this market to a test of the summer highs at 4.50. If
that happens, it is more likely the Mch contract. As the corn carries
widened some farmers were able to book 4.00 cash out of the field for new
crop 2010. Sell about 10 pct there and hope it is your worst sale of the
year.

Futures trading involves substantial risk of loss and is not suitable for
all investors. Past performance is not necessarily indicative of future
trading results. Trading commentary and analysis is based on information
taken from trade and statistical services, news services, and other sources
which we believe to be reliable. We do NOT warrant that such information is
accurate or complete, and it should NOT be relied upon as such. Our policy
is to publish market research that is objective, clear, fair, and not
misleading. Trading commentary and analysis reflects our good faith judgment
at a specific time and is subject to change without notice. There is no
assurance that the advice we give will result in profitable trades. All
trading decisions will be made on a strictly unsolicited basis by the
account holder.



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/

DISCLAIMER: Futures and options trading involve substantial risk. The valuation of futures and options may fluctuate, and as a result, clients may lose more then their original investment. In no event should the content of this website be construed as an express of an implied promise, guarantee or implication by of from the Linn Group, Inc. that you will profit or that losses can or will be limited in any manner whatsoever. Past performance is not necessarily indicative of future results. Information provided on this website is intended solely for informative purposes and is obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.

Information on this page is derived from third parties and is deemed to be reliable. STAT Communications Ltd. accepts no responsibility for errors, omissions or inaccuracies in any of the material presented on this web site. Opinions expressed on this web site are those of the respective individuals and/or institutions and do not represent the opinions of STAT Communications Ltd. or its management.

PageGen v1.0ef