Linn Group Morning Soybean Comment

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

Soybeans rallied back 8 ¾ cents on Wednesday after Tuesdays sharp 21 ½ cent
decline. Traders say the market took its cue from the 4% rebound in the
Chinese stock market after plunging 9 % on Tuesday. Corn recovered after
Tuesdays sell-off which helped soybeans end higher as those 2 markets remain
tied at the hip as outlook for US farmers to plant more corn than soybeans
in 2007. Soybean oil was the strongest of the oilseed products as it
attempted to fill the gap left from Tuesdays sharp declines. Volume was
heavy as an estimated 130,076 futures traded and 2,678 Options. Funds bought
an estimated 3,500 soybeans, 1,000 oil and sold 700 Meal.

Today the Weekly Export sales came out at 415,000 mt  within the range of
analyst expectations of 300,000 to 500,000. Soybean Oil export sales are
reported to be 8,900 mt.  above the range of estimates of 1,000 to 5,000 mt.
and Meal at 80 ,000 mt within the range of estimates of 75,000 to 150,000.
Brazil grain analyst AgRural estimated harvest is 17% complete as of the
27th of Feb. More talk of La Nina yesterday as the NOAA released a statement
talking about projected increase in Hurricanes next season. Sharp declines
in the stock market could pressure the grain complex today as the Chinese
stock market declined 2.9% overnight and opening calls for soybeans are 6 to
8 cents lower. Malaysian Palm oil futures closed lower. Chinese soybeans
closed mixed.

eCBOT Overnight

Contract            Last      Net Change       High      Low

ZSH7                765^0    -8^2                  773^4    763^0

ZSK7                780^2    -7^2                  789^0    778^0

ZSN7                795^6    -6^6                  803^2    792^4

ZSQ7                805^2    -2^2                  805^2    805^2

ZSU7                811^0    S

ZMH7                222.3    -2.1                   224.4    222.2

ZMK7                228.5    -2.2                   231.7    228.1

ZMN7                234.5    -1.6                   237.1    234.4

ZLH7                 30.04    -0.21                 30.09    30.04

ZLK7                 30.60    -0.16                 30.89    30.60

ZLN7                 31.10    -0.05                 31.35    31.10

Early Opening Calls: 6 to 8c lower; Soymeal $1 to$2 lower; Soyoil 10 to 20
lower

Top News

**USDA Soybeans 06/07 Export Sales Net: 415,500 mt; expected 300-500,000

**USDA Soybean Meal 06/07 Export Sales Net: 800 mt; expected 70-150,000

**USDA Soybean Oil 06/07 Export Sales Net: 8,900 mt; expected 1-5,000

**US Census Bureau pegs Jan. US soy oil stocks at 3.155 bln., vs. 3.082 bln
in Dec.

-- Ag outlook forum, economist Collins forecasts an extra 8.7mln in corn
acreage to 87.8 acres, production seen at 12.2 bln bu. w/declining stocks.
American farmers will plant 70.5 mil SOYBEAN acres in 2007, -0.7% lower than
previous estimates

-- USDA: American farmers will harvest 12.2 bil bushels of corn in '07 on 87
mil acres - up +1.1% from previous estimates

-- USDA: American farmers will plant 70.5 mil acres in 2007, -0.7% lower

-- Soybeans 885 thru 2/27/07 no stopper; Meal  1,760 thru 2/28/07 Term put
out 46, ADM stopped 676; Oil 4,344 thru 2/28/07 no stopper

-- Funds turned back to the buys side Wednesday buying  3,500 Soybeans,
1,000 Oil.  Sold 700 Meal.

-- When Pres. Bush visits Brazil next week the Brazil government is set to
ask him to cut import tariffs on Ethanol.

-- Brazil grain analyst AgRural estimates Soybean harvest 17% complete as of
the 27th.

-- Soybean spreads: FCS 700 SH/SK, JPM 600 SH/SK, Fimat 500 SH/SK,

Cash Markets

-- CIF Soybeans:  Mar. +11K to +15K, Apr. +12 to +19, May. +15 to +20, June
+16 to +20. July +16 to +20, Aug. +20 to +30.

-- Processors: Decatur  -32K   Danville –20   Bloomington –20  Gibson City
–30K

-- Board Crush Margins:   Mar.  53.18 off  6.56       May  58.40 off  5.78



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/

DISCLAIMER: Futures and options trading involve substantial risk. The valuation of futures and options may fluctuate, and as a result, clients may lose more then their original investment. In no event should the content of this website be construed as an express of an implied promise, guarantee or implication by of from the Linn Group, Inc. that you will profit or that losses can or will be limited in any manner whatsoever. Past performance is not necessarily indicative of future results. Information provided on this website is intended solely for informative purposes and is obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.

Information on this page is derived from third parties and is deemed to be reliable. STAT Communications Ltd. accepts no responsibility for errors, omissions or inaccuracies in any of the material presented on this web site. Opinions expressed on this web site are those of the respective individuals and/or institutions and do not represent the opinions of STAT Communications Ltd. or its management.