Linn Group Morning Soybean Comment

CHICAGO - Jan 10/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Friday soybeans rallied 6 cents on Friday but closed the week down by 17 ¼
in the March contract. Good South American growing weather, fund liquidation
and abundant supplies are continuing to pressure the soybean complex traders
say. Volume was moderate across the complex and commodity funds ended the
day selling approximately 700 soybeans, 600 oil and even in meal. Informa
released their US soybean production numbers on Friday at 3.26 bil. bu based
on an average yield of 43.8 bu. per acre. This compares with a USDA estimate
of 3.204 bil bu and an average yield of 43.0 bpa.

Overnight Malaysian palm oil futures suffered sharp declines as  demand was
weak and fears of supply disruption started to ease as the weather is
improving dealers said.  Reports out of Argentina show a good start to the
growing season and South American farmers reporting 87% planted of the
record 16 mil hectares reportedly being planted. Massive losses in commodity
prices since the start of 2007 has raised talk that speculative funds are
liquidating. CFTC will release the Commitment of Traders report today.
Overnight Chinese soybean, oil and meal futures are lower.

Opening call 3 to 5 lower

Oilseed plantings are estimated at 9.3 mil. hectares vs. 10.1 mil. last
year.

CIF Corn up 1-2 with  Jan. +28 to +30, Feb. +35 to +40. River house bids
steady to higher

STL. up 1 at –1, Morris IL. River  up 1 at –16.

PNW Corn trains steady :  Jan. +64  Feb.  +67   Mar.  +70

CIF Soybeans steady up 1 with Jan. +33 to +36, Feb. +40 to +44.

Processor bids steady  with pushes still being paid east and west.

CIF SR Wheat  steady off 2 Jan. +10 to +16   Feb. +18 to +20

**** Barge freight steady weak  STL 200 - 215     IL. River  250 – 260
Ohio  240

**** BN rail freight  steady    Jan. -150     Feb. –200   Mar. –200

**** Soybean spreads: Term 600 SH/SN, Fimat 500 SN/SX, Tenco 300 SF/SH, JPM
300 SX/SN

**** Corn spreads: IA 1,000 CZ/CN, Rand 300 CZ/CZ7, 200 CN/CZ, ADM 200 CK/CZ

 *********************************** Cash
Markets*************************************

CIF Corn :  Jan. +28 to +30, LH Jan. +30 to +34,Feb. +35 to +40, Mar. +43 to
+45,

Apr. +37 to +40, May +38 to +42, June +38 to +42

NS Corn   Jan. –13   Feb.  –4   Mar. +2  AMJJ +5    Aug/Sept  +12
Evansville  CSX  -12

CIF Soybeans:  Jan. +33 to +36, LH Jan. +37 to +39, Feb. +40 to +43, Mar.
+42 to +47,

Apr. +35 to +39, May. +35 to +40

Processors: Decatur  -15   Danville –20   Bloomington –20  Gibson City -20

Board Crush Margins:  Jan.  64.60  up  1.13      Mar.  66.28  up  1.37

Exports: Israel tendering for 20,000 mt. EU Feed Wheat for Feb/Mar.

CASH:

Bean Barge

Corn Barge

SRW Barge

HRW Track

Ill Riv Frt

FH Jan

+33/36 H

+27/30 H

270

Jan

+37/40 H

+29/33 H

+12/15 H

+65/70 H

280

Feb

+40/43 H

+35/40 H

+20/25 H

+67/73 H

310

Mch

+42/47 H

+43/45 H

+25/29 H

+68/75 H

310

Truck

Beans

Corn

Wheat

Meal Hi-pro

Oil

Chicago

 -28 H

 -10 H

 -45 H

Toledo

 -40 H

 -21 H

 -45 H

Dec ILL

 -15 H

 - 4 H

-12 F

-125 F



To discuss this report further or for specific trade ideas please contact me
directly

Nathan T. Smith III
Linn Group
nsmith@linngroup.com
toll free: (877) 787-6278
local: (312) 896-2090
fax: (312) 896-2050
www.linngroup.com/

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