Linn Group Morning Soybean Comment

CHICAGO - Feb 1/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybeans settled a penny and a half lower on Wednesday after trading to new
contract highs in the March Contract. Traders say that signs of index funds
adding soybean positions have been supportive. Traders also point to a
rebounding energy market especially crude oil helping support bean oil
prices and increase talk for biodiesel demand.  Some support to the soy
complex stemming from a bullish canola stocks report release early in Canada
with Stats Canada saying canola stocks at the end of 2006 totaling 6.712 mil
mt. down 11.1% from 2005 Funds were active buying an estimated 2,500
contracts, sold 1,000 meal and even in meal.

Today weekly export sales figure were released today and the USDA  reports
export sales at 667,700 mt above the range of analyst expectations of
450,000 to 650,000 mt. US soybean export offers fell a few cents a bushel
pressured by heavy supplies in the pipeline .US Dec census soyoil stocks
were off 10 from last month at 3.065 bil. pounds.  US soybeans for March
shipment were offered at 33 cents a bushel premium to CBOT March, compared
with offers of 25 cents premium in Brazil. Technical traders note that with
soybeans in the upper end of the range that a new high close needs to occur
in the near term to keep the bullish sentiment. Technicians point to support
in the March contract from $7.00 to $7.10 and resistance at $7.30. Overnight
Chinese Soybeans, meal and oil closed higher. Malaysian Palm oil futures
closed higher.

Opening call 2 to 4 cents higher.

eCBOT Overnight

Contract            Last      Net Change       High      Low

ZSH7                723^0    3^4                   725^2    717^4

ZSK7                738^2    3^6                   740^0    733^0

ZSN7                752^0    4^2                   754^0    746^4

ZMH7                208.3    0.9                    209.0    207.0

ZMK7                213.2    0.7                    213.9    212.0

ZLH7                 29.47    0.13                  29.54    29.33

ZLK7                 30.00    0.19                  30.03    29.86

ZLN7                 30.43    0.17                  30.43    30.43

Top News

**USDA Soybeans 06/07 Export Sales Net: 677,700 mt; expected 450-650,000

**USDA Soybean Meal 06/07 Export Sales Net: 165,500 mt; expected 75-125,000

**USDA Soybean Oil 06/07 Export Sales Net: 37,300 mt; expected 25-30,000

-- US Census Bureau:  Dec Soybean Oil Stocks -0.01 bil lbs from Nov, to
3.065 billion lbs, down -0.003 from soy crush report released earlier this
month.

-- Exports: Taiwan bought 23,000 mt. US Corn and 12,000 Soybeans for Mar.

-- The EU commission said the US Farm Bill proposals do not do enough to cut
domestic support payments if there is to be a successful outcome to world
trade talks.

-- CBOT soybean electronic volume was 49,987; pit volume was 46,242. Open
interest rose 4,704.  Soybean oil open interest rose 2,163 contracts.

-- Funds bought 2,500 Soybeans. Sold 1,000 Oil.  Even Meal.-- Soybean
spreads: Fimat 2,300 SK/SH, JPM 1,000 SK/SH, UBS 500 SK/SH,IA 700 SU/SN

-- Barge freight on the Illinois River continues to firm as temps stay cold

Cash Markets

-- CIF Soybeans:  Feb. +28 to +30, LH Feb. +30 to +33,  Mar. +33 to +35,
Apr. +22 to +26, May. +23 to +28, June +24 to +27.

-- Processors: Decatur  -18   Danville -22   Bloomington -20  Gibson City
-20

-- Board Crush Margins:   Mar.  59.52  off 2.02        May  60.91   off
1.44



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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