Linn Group Morning Corn Comment

CHICAGO - Mar 11/10 - SNS -- Following is the morning corn futures comment from the futures commission brokerage firm Linn Group.

The corn market was lower on Wednesday after the bearish USDA report and
pressure from the wheat market.  The July and December contracts closed down
about 3-4 cents which was near the lows of the day on a wild day.  The corn
market opened lower and traded as much as 5-6 lower, but rallied to trade
higher 1-2 as the soybeans rallied, but it eventually drifted lower and
traded 3-5 lower most of the day.  The USDA report certainly didn't have any
bullish news in yesterday's report, but as one farmer told me, we are a far
way from getting any corn planted and until the planters start rolling, it
will be hard to really break the corn market.  The USDA dropped exports
aggressively which was a surprise as the market was looking for a smaller
reduction.  The market will gain some support from wet weather we are
experiencing across the Midwest right now, but the forecast has it getting
drier over the next week or so.  The volume was good at 276,000 and funds
were sellers of 6,000 contracts.

Overnight, the corn market was slightly lower as soybeans went lower and the
outside markets were slightly negative.  With the USDA report behind us,
traders will now continue to look at the weather forecasts and the outside
markets for direction as they await the USDA planting intention report at
the end of the month.  The export sales this morning were lower than
expected, but more importantly were the cancellations in soybeans, meal, and
soyoil which could push those markets lower and drag the rest of the grain
complex lower.  There isn't a lot of bullish news out right now, except for
the wet ground, but there it plenty of time to get corn planted.  We are
starting to see farmers in the south and southeast get into the fields this
week and start planting corn.  It will be an interesting day today as the
export sales for corn and soybeans weren't good and it should weigh on the
grain markets.  The outside markets are mixed, but those markets were
positive earlier this morning, so those could weigh on the grain complex.
Technically, corn looks negative and could roll over and take out the
February lows.  Corn will be called 1-2 lower but it could be 2-4 by the
time the market opens.

Globex Overnight

Contract            Last      Net Change       High      Low      Volume

ZCH10              355^0    -0^4                  357^6    355^0    1162

ZCK10              364^4    -1^0                  368^0    364^4    6630

ZCN10              375^6    -0^6                  378^6    375^4    3211

ZCU10              385^0    -0^4                  388^0    385^0    2309

Early Opening Calls: steady, off 1-2 cents

Top News

**USDA Corn 09/10 Export Sales Net:  338,600 mt; 10/11 Net: 300 mt; expected
600k-800k mt

-- CEO of Smithfield Foods expects shuttered pork markets in Russia & China
to be reopened by late April or beginning of May.  USDA has recently
announced ends to the ban by both countries, with final details yet to be
worked out.

-- China's gov't reported Consumer Prices during February grew at a 2.7%
annualized pace, up from January's 1.5% pace.  The country's top central
banker says in spite of the jump Feb.'s pace remains within the 3% target
set by the bank

-- Pending Tender: Mar 19th is date set for Japanese SBS tender, they're
also seeking a total of 11,000 mt of Barley, acc. to ag ministry official.
9,000 mt will be for Barley malting

-- Dalian Sep corn futures on Thursday traded at 1,872 yuan/mt up 1 from
Wednesday

-- Liffe June corn futures were unchanged at 132.00 euros/mt.

-- Globex Corn Vol: 250,659; Pit Vol: 19,529; Open Interest change: - 4,875

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

-- Outside markets: Energy Complex -0.66 at $81.43; Gold & Silver: -6.4 at
$1101.7 & -0.113 at $16.905; US $ +0.035 at $80.500

Cash Markets

-- CIF Corn steady.  Mar. +34 to +36, April +37 to +38, May +40 to +43, June
+35 to +38, July +39 to +41, Oct. +41 to +43, Nov. +41 to +43, Jan. +36 to
+38

TREND:

Corn and wheat broke into a test of major support at 3.60 CK and 5.00 WN.
Look for the markets to bounce around some before taking those levels out.
They will come out. Still a willing seller of small rallies here.

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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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