Linn Group Morning Soybean Comment

CHICAGO - Mar 6/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Long liquidation continued in Soybeans on Monday as the Global sell-off of
equities and commodities continued. May Soybeans gapped lower and closed the
gap but were unable to post a higher close. Technicians note that with this
57 cent break off the highs in May soybeans that this 50% correction coupled
with yesterdays spike low could be enough for this current move to the
downside. Overnight May beans gained back 3 ¼ cents and early opening calls
are higher. The question on traders minds is, is this move off the highs a
correction or part of a bigger move? Volume was estimated 130,271 futures
traded and 30,855 options in soybeans. Fund activity was active but less
then in the last 2 days. Funds sold an estimated 4,000 soybeans, 1,300 meal
and 1,700 oil.

Brazil grain analyst Celeres issued a new soybean production estimate of 58
mmt vs. their Feb estimate of 57 mmt. Paraguay’s Ag. Minister estimated
Soybean production at a record 6.2 mmt. vs. 3.6 mmt. last year. Oil worlds
estimated South America’s soybean crop is likely to reach a record high of
108.8 mmt this year, up by 6.1 mil from last year due to higher yields in
Argentina and Paraguay. Widespread rainfall at the end of February has
created better crop conditions in Argentina. The Heavy rainfall, however has
caused some crop damage in Brazil. Brazil bean harvest is 21% complete.
Overnight Chinese Soybean, Meal and oil futures closed higher. Malaysian
Palm oil futures closed higher.

eCBOT Overnight:

Contract            Last      Change High      Low

ZSH7                736^0    0^2       736^0    736^0

ZSK7                753^6    3^2       755^6    749^0

ZSN7                768^4    2^6       770^2    761^0

ZSQ7                775^6    5^2       775^6    765^0

ZMK7                222.1    1.6        223.6    220.3

ZMN7                227.0    1.5        228.5    225.8

ZLH7                 29.41    -0.18     30.00    29.41

ZLK7                 30.02    0.04      30.04    29.86

ZLN7                 30.36    -0.13     30.50    30.36

Early Opening Calls: 2 to 3 cents higher.

Early Soybean Complex Calls:  Oil 5-10c higher, Meal 25-50c higher.

Top News:

-- Brazil grain analyst Celeres issued a new Soybean production estimate of
58 mmt. vs. their February estimate of  57 mmt.  They also estimate the
Brazilian farmer has sold 45% of the crop vs. 51% sold on this date last
year.

-- Favorable weather in Brazil speeds up soybean harvesting - Celeres  pegs
progress at 21% of crop vs. 16% this time last year.

-- Malaysian palm oil was +1% higher overnight to $553/ton on better world
markets and short covering ahead of a major conference

-- Fund activity fairly light Monday. Funds sold 4,000 Soybeans, 1,300 Meal,
1,700 Oil.  Bought 2,000 Wheat.  Corn  even.  Commercials were good buyers.

-- Asian stocks market trading higher overnight up 1 to 2%. Dow futures up
98 points.  Chinese Soybean, Corn, Meal and Oil closed higher.

-- Outside Markets:  Gold trading higher this morning $647.00 up $7.70,
Crude Oil trading higher  $60.67 up .60, The Dollar is trading higher vs.
the Yen, lower vs. the Euro.

-- Soybean spreads: ABN 1,000 SX/SK, Term 500 SX/SK, Tenco 600 SH/SK, RJ 300
SK/SN

Cash Markets:

CIF Soybeans:  Mar. +14 to +16, Apr. +14 to +18, May. +15 to +20, June +12
to +20. July +15 to +20, Aug. +20 to +28.

River house bids mixed STL  up  1 at –19, Morris IL. River  up 2 at –33.

Processors: Decatur  -28   Danville –28   Bloomington –30  Gibson City –30

Board Crush Margins:   Mar.  63.62 up  1.71       May  64.36 up  1.02



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.