Linn Group Morning Soybean Comment

CHICAGO - Feb 14/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

March Soybeans closed up 9 ¾ cents on Tuesday a new contract high close.
Soybean meal surged to new contract highs on Tuesday as well. Traders say as
long as meal continues to rally with soybeans this market should remain
strong. Also boosting the soybean complex was a $1.25 per barrel rally in
crude oil helping the rebound in soybean oil prices. Volume was heavy across
the complex. In Soybeans, an estimated 125,824 futures and 23,275 options.
Meal traded an estimated 43,373 futures and 2,494 options, and in Oil an
estimated 49,612 futures and 4,786 options.

The NOPA crush was released today at 148.858 mil. bu. in line with analyst
expectations for 149 mil bu. Oil yields were unchanged but stocks grew 130
mil. lbs. Argentine president signed into law a bill passed late last year
to require all diesel there to have a 5% biodiesel blend. Some talk of
possible decline in Brazilian soy output due to wet weather. Overnight
Chinese Soybeans, Meal and Oil closed higher.

eCBOT Overnight

Contract            Last      Net Change       High      Low

ZSH7                755^6    0^6       756^4    753^6

ZSK7                771^4    0^0       772^0    769^4

ZSN7                785^0    1^2       785^0    782^6

ZSQ7                789^0    0^0       789^0    789^0

ZSU7                794^4 S

ZMH7                223.3    0.6        223.5    222.5

ZMK7                227.4    0.1        227.8    227.2

ZMN7                231.6    0.5        231.8    231.0

ZLH7                 30.01    0.00      30.10    29.95

ZLK7                 30.58    0.08      30.58    30.44

ZLN7                 31.00    0.11      31.00    30.88

Early Opening Calls: 1 to 2 higher.

Top News

**US Jan NOPA Soybean crushings: 148.858 mln bu vs Dec 149.16

**US Jan NOPA Soyoil Stocks: 2.739 bln lbs vs Dec 2.606

**US Jan NOPA Soymeal Exports: 563,744 T vs Dec 514,500 T

-- Oil World says recent heavy rains in Brazil may threaten yields and
quality.  They estimate the crop will probably be no more than 56.0 mmt.

-- USDA to issue 10-year estimates for US Crop and livestock output
-Wedensday at 12pm ET.

-- Soybean spreads: ADM 6,000 SH/SK, Fimat 3,500 SK/SH, IA 600 SK/SH, ABN
400 SN/SK

-- Chinese Soybean, meal and Oil futures closed higher

-- Funds moved back to the buy side Tuesday buying 2,000 Soybeans, 3,000
Meal. Even  Oil.

Cash Markets

-- CIF Soybeans:  Feb. +33 to +38,  Mar. +32 to +36, Apr. +19 to +25, May.
+19 to +25, June +19 to +25. July +20 to +25, Aug. +25 to +29.

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

-- Board Crush Margins: Mar. 65.05 off .07; May  64.06  off  .95



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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