Linn Group Morning Soybean Comment

CHICAGO - Mar 8/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

After opening nearly unchanged May soybeans quickly ran 14 cents higher on
within the first 20 minutes of trading on Wednesday, ending the day 9 ½
cents higher. Wednesdays rally ended 4 consecutive lower trading days.
Volume was on the high side with an estimated 115,253 soybean  futures and
25,708 options traded. Traders say talk on the floor centered around a crude
oil rally, with crude rallying more than $1.00 per barrel, propelling bean
oil and thus the soybean complex in general. Some say the market was due a
bounce after sliding to one month lows this week, following a sell-off in
global markets. Funds came back to the buy side buying an estimated 7,000
soybeans, 2,000 oil and 1,000 meal.

Today the USDA’s weekly export sales numbers were released and show soybean
sales of 566,000 mt. vs analyst estimates of 300,000 to 600,000, Meal sales
of 66.1 mt. vs analyst estimates of 25,000 to 100,000 mt. and bean oil sales
of 8,000 mt. above analyst expectations of 0 to 5,000 mt. The average
estimates for Friday’s USDA S&D report for soybeans are 589, vs. 596.
Analysts expect the USDA to hike it’s estimate of the South American soybean
crop by 1 to 2 mil mt in tomorrows report and expect little, if any change
in the US ending stocks estimate. Reports that he truck drivers strike in
Argentina has virtually stopped trade in that country. Truckers are
demanding a raise in grain freight rates and negotiations to end the strike
has made little progress. Soybean harvest in Argentina is about to get under
way and the Brazil harvest is progressing. Overnight Chinese Soybeans and
Meal closed mixed to higher. Malaysian Palm oil futures closed higher

CBOT Overnight

Contract            Last      Net Change       High      Low

ZSK7                760^2    3^0                   760^2    755^0

ZSN7                775^2    2^4                   775^2    770^2

ZMH7                218.4    0.9                    218.7    218.4

ZMK7                224.0    1.4                    224.0    222.0

ZMN7                229.0    1.3                    229.0    228.0

ZLH7                 29.89    0.04                  29.89    29.89

ZLK7                 30.36    0.15                  30.36    30.11

ZLN7                 30.66    0.00                  30.66    30.63

Early Opening Calls: Soybeans 2 to 3c higher; Soymeal $1 to $2higher ;
Soyoil 25 to 30pts higher

Top News

**USDA March 8th Weekly Export Sales, Soybeans: 566.0 mt, expected =
300k-600k

**USDA March 8th Weekly Export Sales, Soymeal:  66.1k mt, expected =
25k-100k

**USDA March 8th Weekly Export Sales, Soyoil:  8k mt, expected = 0k-5k

-- South American grain harvests increase demand for Panamax vessels -
charter rates at 3 year highs - $45,000/day plus bonus

-- Soybeans Deliveries: 705 thru 3/7/07 Term stopped 143

-- Soyoil Deliveries: 643 thru 3/7/07 Term stopped 249, ADM  83

-- Soymeal Deliveries:  41 thru 3/6/07 ADM stopped 18

-- Soybean spreads: ABN 1,400 SX/SK, Tenco 400 SH/SX, Term 100 SK/SH, RJ 100
SK/SH

-- British winter rapeseed acreage up +17.9% to 1.37 mil acres, winter wheat
up +4.6% to 4.25 mil acres, acc. to government survey

-- Average estimates for Friday’s USDA S&D report:

Corn                 763  vs. 752

Soybeans          589  vs. 595

Wheat               473  vs. 472

-- ECB raises rates 0.25%, meanwhile Bk of England held interest rates
steady.

Cash Markets

-- CIF Soybeans:  Mar. +8 to +12, Apr. +11 to +15, May. +16 to +18, June +6
to +??. July +12 to +20, Aug. +20 to +28.

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

-- Board Crush Margins:   Mar.  64.10 up  3.45       May  64.78  up  .84



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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