The Misva of Lulab applies specifically during the day; one does not fulfill the obligation if he takes the Lulab at night. The Torah speaks of taking the four species "on the first day" ("Ba’yom Ha’rishon" – Vayikra 23:40), indicating that the Misva must be fulfilled specifically during the daytime hours.
The earliest time for taking the Lulab and Etrog in the morning is Netz Ha’hama, or sunrise. Nevertheless, one who took the Lulab and Etrog before sunrise has fulfilled his obligation, provided that he did so after the point of Amud Ha’shahar (daybreak, when the sun’s rays first appear on the eastern horizon).
While this is the commonly accepted Halacha, the Sha’ar Ha’kavanot records the practice of the Arizal (Rav Yishak Luria of Safed, 1534-1572) to take the four species specifically before sunrise (though after Amud Ha’shahar), and in the Sukka. The Arizal’s practice is novel not only in that he performed the Misva before sunrise, but also in that he performed the Misva before the morning prayer service. Seemingly, as Hacham Ovadia Yosef notes, the principle of "Tadir Ve’she’eno Tadir, Tadir Kodem," which means that a more frequent Misva should be performed before a less frequent Misva, should require praying before taking the Lulab. Presumably, the Arizal had valid reasons for taking the Lulab and Etrog before sunrise.
Those who follow the Arizal’s customs should take the four species in the Sukka before sunrise, but for everyone else, the Misva should not be performed until after sunrise. It is proper, however, to follow the Arizal’s custom of taking the Lulab and Etrog in the Sukka before the morning prayer service – either in one’s own Sukka, before he comes to the synagogue, or in the synagogue’s Sukka, before praying.
Must one recite the Birkot Ha’shahar (morning blessings) before taking the Lulab and Etrog in the morning?
It is clear that one must wash his hands before performing the Misva of Lulab, in order to remove the Tum’a (impurity) from his hands. Thus, one must certainly wash and recite the Beracha of "Al Netilat Yadayim" before taking the Lulab and Etrog. A slightly more complicated question arises concerning the recitation of Birkat Ha’Torah before taking the four species. Halacha forbids studying Torah before reciting Birkat Ha’Torah in the morning. But is it permissible to perform a Misva, such as the four species, before reciting Birkat Ha’Torah?
The Mishna Berura (commentary by Rav Yisrael Meir Kagan of Radin, 1839-1933), in Siman 47 (Se’if Katan 7), rules that it is permissible to perform a Misva before reciting Birkat Ha’Torah. Even though a person thinks in his mind the Halachot relevant to the performance of the Misva, this is permissible before Birkat Ha’Torah because one does not engage in these thoughts for the purpose of Torah learning. In principle, then, it would be permissible to take the Lulab and Etrog before reciting Birkat Ha’Torah in the morning during Sukkot.
Practically, however, as Hacham Ovadia Yosef writes in his work Hazon Ovadia – Sukkot (footnote, p. 372), one must recite Birkat Ha’Torah before taking the four species. It is customary to recite before performing this Misva the "Le’shem Yihud" prayer, which contains several verses from Tanach. It is forbidden to recite verses from Tanach before reciting Birkat Ha’Torah, and therefore one should ensure to recite Birkat Ha’Torah before taking the four species in the morning during Sukkot.
Thus, while most of the morning Berachot do not need to be recited before one takes the Lulab and Etrog, one should recite "Al Netilat Yadayim" and "Birkat Ha’Torah" before performing this Misva.
Summary: The preferred time for performing the Misva of Lulab and Etrog is after sunrise, before the morning prayer service, and it should be done inside a Sukka. Those who follow the customs of the Arizal take the Lulab and Etrog in a Sukka before sunrise. One should wash his hands and recite the Beracha of "Al Netilat Yadayim," and also Birkat Ha’Torah, before taking the Lulab and Etrog in the morning.
