Linn Group Morning Soybean Comment

CHICAGO - Mar 13/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

May Soybeans posted 5 ½ cent higher close at the expense of corn. Traders
say the move was spurred by a release of a survey yesterday by ADM. The
survey was based on a polling of elevators which says this year’s US soybean
acreage will be 67.2 mil acres, sharply below last years 75.5 mil acres.
This survey is also below the USDA’s current forecast for 70.5 mil. acres.
Traders say that private estimates for planting intentions will continue to
trickle in and as we approach the USDA’s actual announcement, the market
will become even more sensitive to these acreage estimates. Informa has
delayed their Acreage estimate until Friday, but early indications are that
hint of an estimate of 70.8 mil acres for soybeans. Volume on Monday was
relatively light with an estimated 85,977 futures traded and 20,058 options.

South American harvest is picking up. Reports show Brazil soybean harvest
31% complete approximately 10% ahead of last year and 13% ahead of normal.
Brazilian grain analyst Celeres, estimates farmers have sold 48% of the crop
to commercials. Argentina Ag secretary said rains in Argentina have
generally improved the outlook for the country’s 2006/07 crop, though some
areas have received excessive rain. The latest survey by Farm Futures
Magazine shows U.S. farmers will commit the largest amount of their land to
corn in 60 years in 2007 at 88.4 million and sow 68.9 million acres of soy.
Overnight Chinese soybeans and soymeal closed mixed. Malaysian Palm oil
futures closed firm.

CBOT Overnight

Contract            Last      Net Change       High      Low

ZSH7                754^0    1^6                   754^0    753^0

ZSK7                767^2    2^2                   767^2    764^2

ZSN7                782^2    1^4                   782^6    780^2

ZSU7                793^4    1^2                   793^4    793^4

ZMH7                218.3    0.0                    218.3    218.3

ZMK7                224.6    1.4                    225.2    223.2

ZMN7                229.3    1.5                    230.0    228.0

ZLK7                 30.71    0.00                  30.71    30.55

ZLN7                 31.07    -0.14                 31.18    31.07

Early Opening Calls: 1 to 3c higher; soymeal 50c higher; soyoil slightly
higher

Top News

-- ADM forecasts corn acres for Spring 2007 could reach 88.5 mln acres -
Soybean plantings to fall to 67.2 mln acres acc to analysts.

-- India to hold off on imports of genetically modified soyoil until
December acc to gov't officials.

-- Soybean spreads: Man 200 SH/SK, Fimat 200 SH/SK, ABN 200 SX/SN, Caly 200
SN/SK

-- China's National Bureau of Statistics said today that consumer prices
rose 2.7% in February after a 2.2% jump in January

-- Malaysia's commodities minister forecasts 2007 palm oil output to reach
16.5 mln mt, up 3.7% from 15.9 mln mt in 2006.

-- Winnipeg Commodity Exchange officials downplay merger rumors.  Analysts
say hedge funds & investors have been buying shares of the exchange on
speculation that a merger may occur as the industry looks to consolidate,
according to reuters.

-- Record temps are expected across the middle US today, scattered rains for
LH of week.

-- OPEC Sec. General suggests the cartel will likely leave production quotas
untouched at its Thursday meeting

Cash Markets

-- CIF Soybeans:  Mar. +5 to +10, Apr. +10 to +15, May. +14 to +19, June +6
to +20. July +12 to +20, Aug. +20 to +25. Oct. +27 to +35

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

*       Board Crush Margins: Mar. 62.22 up .48; May 64.70 up .68



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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