Linn Group Morning Soybean Comment

CHICAGO - Mar 9/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

May soybeans posted a 1 ¾ cent higher close after trading in a narrow 8 ½
cent range ahead of todays USDA Crop S&D report. Traders say a combination
of follow through technical buying and bigger than expected weekly export
sales supported the market. Volume was moderate with an estimated 80,383
soyben futures traded and 13,221 options. Funds bought an estimated 2,500
soybeans, 4,000 oil and sold 1,000 meal.

Todays USDA crop supply and demand report shows US Mar Soybean 06/07
Carryout: 0.595 bln bu above the analyst estimate of 589 bil. bu. Feb
carryout was 0.595 bil bu. The USDA raised Brazil's soy crop to 57.0 mil mt.
from the previous 56.0 mil mt.  and left Argentina's crop unchanged at 44.0
million. After the markets closed there was an announcement by the union
leader that the truck drivers strike in Argentina had ended. Traders say the
USDA report overall is neutral for soybeans and should not have a major
impact on the market direction today. Overnight Chinese Soybean, Meal and
Oil closed lower. Malaysian Palm oil futures closed flat.

eCBOT Overnight

Contract            Last      Net Change       High      Low

ZSH7                745^0    0^0                   745^0    745^0

ZSK7                762^0    3^0                   762^2    756^4

ZSN7                777^2    2^6                   777^4    771^6

ZMK7                223.1    2.0                    223.1    220.2

ZMN7                228.0    1.9                    228.0    225.5

ZLK7                 30.61    0.01                  30.70    30.45

ZLN7                 31.11    0.01                  31.15    30.97

Post Report Opening Calls: 1 to 2 cents higher.

USDA Report Headlines:

**US Mar Soybean 06/07 Carryout: 0.595 bln bu.; est. 0.59; Feb Rpt 0.595

**US Mar Soyoil 06/07 Carryout: 2.664 bln lbs. ; Feb Rpt 2.689

**US Mar Soymeal 06/07 Carryout: 300,000 T ; Feb Rpt 300,000 T

**World 06/07 Soybeans Carryout: 57.5 mmt; Feb Rpt 57.40

**World 06/07 Soymeal Carryout: 4.62 mmt; Feb Rpt 4.57

**World 06/07 Soyoil Carryout: 2.71 mmt; Feb Rpt 3.32

**March China 06/07 Soybean Output:  16.2 mmt; Feb USDA Rpt: 16.2

**March Brazil 06/07 Soybean Output: 57.00 mmt; Feb USDA Rpt: 56.00

Top News

-- 4.1 million acres expected to exit the USDA' s Conservation Reserve
Program:  34% of which is in corn producing regions - results consistent
with past re-enrollment figures, acc. to USDA Secretary Johanns

-- Informa will release planting estimates Tuesday.

-- Soybean spreads: JPM 200 SK/SN, 100 SF/SX, Fortis 100 SH/SK

-- China's Ministry of Finance announced today that it will create an agency
along the lines of Singapore's Temasek Holdings to manage it's $1.07
trillion in forex reserves.

-- Malaysian palm oil futures marked time ahead of market/price forecasts
expected at next week's industry meeting

Cash Markets

-- CIF Soybeans:  Mar. +9 to +12, Apr. +14 to +16, May. +16 to +18, June +6
to +20. July +12 to +20, Aug. +20 to +28.

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

-- Board Crush Margins:   Mar.  61.74 off  2.36       May  64.02  off  .76



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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