Linn Group Morning Soybean Comment

CHICAGO - Feb 5/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Friday was rally day for Soybeans closing the day 15 ¼ cents higher in the
March. This close marks a new high close for the March contract for both the
daily charts and the  weekly chart. Traders say this puts a new floor under
beans. Funds bought an approximate 6,000 soybeans, 13,000 oil and 2,000
meal. Overnight the market has added another 8 ½ cents on the heels of
Fridays new high close.

Pro farmer survey released shows a sharp drop in soy acres this year. The
Survey estimates 66 mil acres will be planted this year vs. 75.5 mil acres
last year. The CFTC released the weekly commitment of traders report Friday
showing 83,860 contracts long of soybeans up 5,617, Meal long33,566 up 2,835
and Oil Long 59,944 up 3,552. The report also shows index funds long 133,866
Soybeans which is a reduction of 161 contracts from the previous report, Oil
long 67,655 off 1,665. South American Soybean harvest progressing well in
the Northern areas and early reports are showing good yields. New reports of
Bird Flu in a British Turkey Farm could cause meal demand issues in Europe
with reports that Britain is culling turkeys in an effort to control the
first H%N1 bird flu outbreak there. Overnight Chinese Soybean, Meal and oil
futures closed higher. Malaysian Palm oil futures closed higher.

Opening Call 5 to 8 cents higher.

eCBOT Overnight

Contract            Last      Net Change       High      Low

ZSH7                745^2    8^4                   747^4    737^2

ZSK7                759^6    7^2                   763^0    752^0

ZSN7                772^0    6^4                   776^0    766^6

ZSQ7                777^0    5^4                   780^0    775^0

ZSU7                782^6    6^6                   784^0    782^6

ZMH7                213.5    0.8                    214.3    212.3

ZMK7                217.5    0.6                    219.0    216.4

ZMN7                222.9    2.1                    222.9    221.5

ZLH7                 30.70    0.33                  30.84    30.26

ZLK7                 31.20    0.37                  31.31    30.71

ZLN7                 31.68    0.35                  31.69    31.16

Top News

-- Export News:  India fails to deliver on promised 77,500 tons of soymeal
to South Korea - SK purchases from China instead

-- United Kingdom sees first H5N1 bird flu case in turkeys, acc. to a
government official

-- Pro Farmer survey shows Soybean plantings were estimated at 66 mil. acres
vs. 75.5 mil. this past year. The survey covered 23 states.

-- -13.5% decline expected in total US land area devoted to cotton, dropping
to 13.21 mil acres total, acc. to a survey by National Cotton Council

-- Funds swung to the buy side Friday buying: 6,000 Soybeans, 13,000  Oil,
2,000 Meal.

-- Malaysian palm oil increased +1.8% overnight to $558/ton, primarily on
CBOT soy oil strength

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

Cash Markets

-- CIF Soybeans:  Feb. +25 to +31, LH Feb. +27 to +35,  Mar. +30 to +36,
Apr. +15 to +24, May. +15 to +28, June +20 to +25.

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

*       Board Crush Margins: Mar. 65.26 up 4.00; May  63.81  up  1.94



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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