Linn Group Morning Soybean Comment

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

The grain complex was battered on Thursday led lower by lingering fears over
economic growth in China and concerns that high prices were starting to hurt
exports. May soybeans gapped lower for the 2nd time this week and ended the
session down 25 ½ cents lower. Volume was heavy and fund selling was the
feature. Funds sold an estimated 20,000 soybeans, 5,000 meal and 6,000 Oil.
Liquidation was significant in corn wheat and beans with open interest off
4,942 soybeans, 7,254 in wheat and corn off 17,220.

Traders say the market could be under pressure again today with the major
stock indicies under pressure this morning and gold off another $11.00 this
morning. The USDA outlook meetings continue for the 2nd day and analysts say
that no big suprises have surfaced yet. Continued talk that one Chinese
exporter has run into problems with several hundred containers of US
soybeans in China. Port authorities are not allowing the soybeans to be
unloaded due to a lack of proper paperwork. Deliveries this morning are
reported to be 854 in March Soybeans. Chinese soybeans, meal and oil close
lower. Malaysian palm oil futures closed lower.

Opening call 3 to 5 cents lower.

eCBOT Overnight

Contract            Last      Net Change       High      Low

ZSH7                744^0    -2^2                  748^0    742^2

ZSK7                756^0    -6^0                  764^2    755^6

ZSN7                770^2    -6^0                  778^6    770^2

ZSQ7                777^4    -3^4                  781^0    777^4

ZSU7                780^2    -6^6                  780^6    780^2

ZMH7                217.4    -2.4                   219.0    217.4

ZMK7                223.7    -1.9                   226.4    223.2

ZMN7                228.5    -2.0                   230.5    228.2

ZLH7                 29.42    -0.11                 29.94    29.42

ZLK7                 29.91    -0.10                 30.15    29.90

ZLN7                 30.60    0.12                  30.60    30.40

Top News

-- Deliveries: Soybeans  854 thru 2/28/07 no stopper; Oil 3,530 thru 3/1/0
ADM stopped 153; Meal  1,029 thru 3/1/07 ADM stopped 63

-- Soybean spreads: JPM 400 SH/SK, Citi 800 SX/SK, RJ 400 SK/SH, Man 300
Sh/SK-- The State Administration of Foreign Exchange has lowered local
financial institutions foreign debt borrowing quota for this year.

Cash Markets

-- CIF Soybeans:  Mar. +16 to +19, Apr. +16 to +20, May. +16 to +22, June
+16 to +20. July +16 to +20, Aug. +24 to +30.

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

-- Board Crush Margins:   Mar.  62.14 up  8.06       May  64.43 up  6.03



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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