Linn Group Morning Soybean Comment

CHICAGO - Jan 11/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

March soybeans ended nearly unchanged after trading to 3 week lows on
Wednesday up ¼ cent. Traders say the rally in corn seemed to help Soybeans
rally back. Traders note that Soybeans will be supported on corn rallies due
to the focus on preventing losing Soybean acreage this spring to corn acres.
March soybeans closed at 664 ¾ but broke off their highs of 670 late in the
session on what traders report was index fund liquidation in corn.  Funds on
Wednesday sold 1,800 Soybeans, 4,000 Oil and even in Meal. Volume was
moderate with an estimated 87,221 futures traded. Overnight March Soybeans
are up 7 ¾ cents.

China’s customs officials reported that in 2006 China imported 28.2 mmt. of
Soybeans up 6.3% from 2005. The USDA released the weekly export sales today
and show Soybean exports of 589.5 tmt. above the range of estimates of
350,000 to 550,000 tmt. The USDA will release its final 2006 Soybean
production figures. It is widely believed that the report will show the US
produced its biggest soybean crop on record in 2006. the consensus among
analysts is near 3.241 bil. bu. up 37 mil bu. from the USDA’s latest
estimate. This would surpass the previous record crop of 3.1 bil bu. sent in
2004. Overnight Malaysian Palm Oil Futures closed higher overnight. Chinese
Soybeans, meal and oil futures closed higher.

Opening call 6 to 8 cents higher

eCBOT Overnight

Contract           Last      Net Change      High     Low

ZSF7                659^6    6^0                   659^6    658^2

ZSH7               672^4    7^6                   674^4    665^6

ZSK7               686^0    6^6                   688^0    678^6

ZSN7               701^2    8^6                   701^2    695^0

ZMH7              194.1    2.4                    194.4    191.6

ZMK7              198.0    2.3                    198.0    197.0

ZLH7               28.32    0.28                  28.35    28.04

ZLK7               28.70    0.19                  28.70    28.64

Top News

**USDA Soybeans 06/07 Export Sales Net: 589,500 mt; expected 350-500,000

**USDA Soybean Meal 06/07 Export Sales Net: 101,500 mt; expected 50-100,000

**USDA Soybean Oil 06/07 Export Sales Net: -1,300 mt; expected 5-10,000

-- Grain markets overnight rally on USDA's Keith Collins comments - he
raises concerns to congress that biofuel production surpassing expected corn
production. He indicated a corn use level equal to a trend line yield of 152
bpa on a total planted acre base of 85.6 BPA.

-- China purchased a total of 28.27 mil tons of soybeans in the 2006 year,
acc. to gov officials - an increase of 6.3% from last year

-- US Census Bureau:  Soyoil stocks in November at 3.074 mil, +2% over Oct,
+66% greater than Nov '05

-- Brazil gov't slightly raises 06/07 soybean crop production to 54.9 mln mt
vs Dec projection of 54.7 mln mt. The latest projection compares to year ago
production of 53.4 mln mt., CONAB says.

-- Export problems in Ukraine is reducing supply of feed wheat - viewed as
supportive to US Corn exporters, acc. to traders.

-- Soybean volume was 40,564 electronically traded; 45,324 pit traded; open
interest off 1,140 contracts.

-- Index Funds sold 1,800 Soybeans, 4,000  Oil.  Even  Meal.

-- Soybean spreads: JPM 500 SH/SX, Term 500 SH/SN, 500 SN/SX, Tenco 500
SH/SK

-- The Dollar is trading lower vs. the Euro, higher vs. the Yen.

-- Chinese Corn, Soybean, Meal and Oil futures closed higher.

-- Malaysian palm oil futures +1% today to $540/ton on overnight gains in
CBOT soyoil and minor weather issues

Cash Markets

-- CIF Soybeans:  Jan. +36 to +39, LH Jan. +40 to +42, Feb. +42 to +46, Mar.
+44 to +48, Apr. +35 to +39, May. +35 to +39

-- Processors: Decatur  -15   Danville –20   Bloomington –10  Gibson City
-20

-- Board Crush Margins:  Jan.  63.67  up  .30      Mar.  65.43  up  .52



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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