Linn Group Morning Soybean Comment

CHICAGO - Feb 2/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

March Soybeans ended Thursdays session 2 cents higher after making new
contract highs. While the market did close higher on the day it gave back
much of its gains closing only a penny and a half off the lows. This is the
second day in a row that the market has made new highs and closed at or near
the low of the days range. Larger than expected export sales for soybeans,
meal and oil and concerns about dryness in Argentina lent early support.
Thursdays trade rallied in spite of corn which was on the defensive all day.
Volume was moderate at 94,524 futures traded and 5,021 options. Funds bought
2,000 soybeans, 2,000 oil and even in meal.

Argentine agriculture Secretary said today that Argentina soy crush came in
at 32.7 mil mt of soybeans last year up 14% from 2005. Soybean crushing has
gron strongly in Argentina since that countrys currency was sharply devalued
in 20002 tripling export values measured in Argentina pesos. Little new
fundamental news today. China purchased a cargo of Argentine soybeans.
Mexico shopping around for US soybeans and talk of Japan interest in
purchasing biodiesel. Technicians point to short term liquidation at the
contract highs which could explain the market struggling with new contract
highs. Traders view support from $7.15 to $7.10 area with overhead
resistance at $ 7.50. Overnight Chinese Soybeans meal and oil closed higher.
Malaysian palm oil futures closed higher

CBOT Overnight

Contract            Last      Net Change       High      Low

ZSH7                722^6    1^2                   724^0    718^6

ZSK7                738^2    0^6                   739^0    734^0

ZSN7                751^2    0^4                   752^4    747^6

ZMH7                209.1    1.2                    209.1    207.3

ZMK7                214.2    1.3                    214.2    212.5

ZMN7                217.5    0.2                    218.0    217.5

ZLH7                 29.51    -0.07                 29.71    29.43

ZLK7                 30.00    -0.09                 30.19    30.00

ZLN7                 30.52    -0.03                 30.52    30.46

Opening Calls: 2 to 3c higher

Top News

-- Argentina reported  it's first case of Asian Soybean rust this season.

-- Semi Annual cattle inventory at 2pm CT Friday.  Expectations for Total
cattle & calves are near year ago levels.  Herd expansion expectations are
below year ago levels.

-- S Korea & US back at beef negotiation table next week ahead of bilateral
Free Trade Agreement negotiations the following week.  S Korea still against
linking FTA and beef imports.

-- Univ of Illinois-Urbana/Champaign & Univ. of Cal. - Berkley are awarded
bio fuel research grants from BP petroleum.-- -- Soybean sales also near
trade estimates at 24.9 mil.bu. taking year to date sales to 841 mil.bu vs.
649 mil.bu. last year.

-- Funds also sold 5,000 Wheat  Bought 1,500 Soybeans, 2,500 Oil.  Even
Meal.

-- Soybean spreads: IA 2,000 SK/SX, 500 SN/SX,ADM 600 SX/SN, 300 SX/SK, JPM
400 SH/SK.



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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