Linn Group Morning Soybean Comment

CHICAGO - Mar 7/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

May Soybeans posted their 4th consecutive lower close on Tuesday taking us
59 ¾ cents off the May contract highs posted just 9 trading sessions ago.
After opening higher the market sold off early and remained in a 3 cent
range for the remainder of Wednesdays session. Volume was lighter than in
previous sessions with an estimated 97,938 soybean futures traded and 27,953
options. Funds ended the day net sellers of an estimated 2,500 soybeans,
1,000 meal and 1,500 oil. Commercials bought an estimated 2,500 bean oil.
Since March 1st. Large speculators have sold approximately 35,000 soybeans
cutting by nearly a third their record long position of 111,000 contracts
and traders question if the liquidation is over.

Friday the USDA will issue its monthly crop report and most analysts expect
the government to keep its 2006/07 US soybean ending stocks estimate near
its February forecast of 595 mil. bu. The average of analysts estimates was
589 mil. bu. Most traders indicate they expect this report to be a non
factor and are looking to the March 31st. Planting intentions report as the
next big report. China’s grain and oils information centre issued a
reporting estimate that 2007 corn plantings will increase 1% and soybean
plantings will fall 3.3%. Brazil’s government issued a new Soybean
production estimate of 56.7 mmt. This is up from their February estimate of
56.3 mmt. Overnight Chinese Soybean futures closed mixed. Malaysian Palm Oil
futures closed mixed.

eCBOT Overnight

Contract            Last      Net Change       High      Low

ZSH7                732^0    -1^0      732^6    731^4

ZSK7                746^4    -1^2      748^4    745^2

ZSN7                762^6    -0^2      763^4    760^4

ZMH7                214.6    1.1        214.6    214.2

ZMK7                219.5    -0.2       220.3    219.0

ZMN7                224.7    0.0        224.7    224.7

ZLH7                 29.45    0.00      29.45    29.45

ZLK7                 29.84    -0.01     29.85    29.73

ZLN7                 30.23    -0.09     30.25    30.20

Early Opening Calls:  2 to 3c lower; soymeal & soyoil slightly lower

Top News

-- Brazilian gov't supply group -CONAB - raised soybean production estimates
on favorable conditions - forecsts record of 56.7 mln mt.

-- Malaysian palm oil -0.6% overnight to $551/ton - volume very light as
traders await data and opinions from an upcoming conference next week

-- Soybean spreads: UBS 1,000 SX/SN, ABN 200 SH/SK, RJ 200 SH/SK, ADM 200
SK/SN

Cash Markets

-- CIF Soybeans:  Mar. +6 to +10, Apr. +11 to +15, May. +13 to +20, June +10
to +20. July +13 to +20, Aug. +21 to +28.

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

-- Board Crush Margins:   Mar.  60.65 off  2.97       May  63.94  off  .44



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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