Linn Group Morning Soybean Comment

CHICAGO - Jan 16/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Fridays USDA final 2006 crop report had a major impact on Soybean prices
mainly due to the reduction in the corn. March soybeans ended the day up 42
¼ cents after flirting with a limit up move. At one point in the trading
session March soybeans were up 49 ½ cents just ½ cent off a limit move.
Traders say that the USDA’s production numbers for Soybeans were bullish but
the fact that corn traded limit up all day was the main reason for the big
up day in Soybeans. As a result funds were active on Friday buying an
estimated 11,000 soybeans, 6,000 meal and 5,500 Oil. Friday the CFTC
released the commitment of traders report. As of January 8th. they show
funds long 54,906 soybeans down 4,673, Meal long 7645 down 4,666 and long
Oil 43,102 down 4,555. The supplemental report showing index funds as of Jan
9 long 130,193 soybeans up 466, Oil long 68,478.

Today the NOPA crush was released showing the crush at 149.162 mil. bu.
within the range of estimates of 148.5 to 150.5  mil. bu. The Buenos Aires
Grain Exchange said in its weekly report that the Argentine soybean crop is
making good progress due to excellent growing weather and the USDA predicts
a record soybean crop for Argentina. Oil World raises forecasts of Brazil,
Argentina soy crops on good weather. The markets were closed on Monday due
to the Martin Luther King Holiday and overnight the Corn market is again
limit up overnight which traders say will help boost soybean prices. Early
calls are higher. Malaysian Palm oil futures closed higher.

Chinese soybeans

Opening call 3 to 5 higher

eCBOT Overnight

Contract            Last      Net Change       High      Low

ZSH7                719^6    3^2                   721^0    709^0

ZSK7                733^6    2^2                   749^0    724^4

ZSN7                747^0    4^0                   750^0    738^0

ZSQ7                748^0 S 41^0                  747^6    715^0

ZSU7                759^0    9^0                   760^0    750^0

ZMH7                211.4    1.8                    212.5    207.7

ZMK7                215.0    1.4                    215.6    211.8

ZMN7                217.7    0.0                    220.0    217.7

ZLH7                 29.25    0.10                  29.34    28.87

ZLK7                 29.70    0.18                  29.70    29.32

ZLN7                 30.10    0.17                  30.10    30.10

Top News

-- NOPA December crush report: 149.162 mln bu. Estimated at 148.5 – 150.5

-- Soybean spreads: UBS 1,000 SX/SN, RJ 700 SX/SH, ABN 400 SX/SN, Rand 500
SN/SX

-- Funds bought 11,000 Soybeans, 6,000 Meal and 5,500 Oil.

-- Open interest in Soybeans up 18,851. eCBOT volume on Friday was pegged at
58,515; pit trade was 118,863 contracts.

-- Jan Soybeans had 292 issuers/stopper; Jan Soyoil 15 contracts; Jan
Soymeal 401 contracts.

-- The renewable energy association, APPA estimates  biodiesel production IN
SPAIN of 600,000 mt in 2008 - up 380% from 2006 at 125,000 mt.

-- Brazil's Vegetable Oils Industry association raised forecasts of the new
soybean crop 1% to 55.8 mln mt.

-- China and the Philippines signed a multi billion dollar agreement to
develop Philippine farm land and develop five Ethanol projects.

-- European grain markets up sharply Monday, responding to gains in US ag



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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