Linn Group Morning Soybean Comment

CHICAGO - Apr 4/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybeans gave back most of Mondays gains closing down 15 ½ cents. Traders
say the decline was on talk that a sharper drop in the price of corn than
soybeans since the USDA report last Friday could entice farmers to switch
some of their corn acres to soybeans. Soybeans opened lower and spent the
rest of the session with an orderly decline. Both Meal and oil ended lower
as well. Crude oil was lower on easing tensions in the Middle East adding to
the weakness in the soybean oil market. Volume was heavy with an estimated
106,893 soybean futures traded down from Mondays record volume of 211,763
futures traded. Funds were active once again selling 6,000 soybeans, 4,000
meal and 4,000 Oil

Traders say weather will begin to be a factor in all of this very soon.
Current Midwest weather calls for wet, very cold conditions, preventing good
drying and potential planting delays. Corn Planting in the Midwest is off to
a slow start due to the cold, wet weather and that could lead to more
soybean plantings. Talk today of weakening soybean oil basis levels in
Illinois. Soybean basis levels were mostly steady in the Midwest and
movement of soybeans is slow according to grain merchants. As long as
futures prices are falling farmers will be discouraged from selling.
Overnight Chinese soybeans closed higher and meal mixed. Malaysian Palm oil
futures closed higher.

CBOT Overnight

Contract            Last      Net Change       High      Low

ZSK7                770^4    6^6                   771^2    762^6

ZSN7                786^0    5^4                   786^4    778^6

ZSQ7                786^0

ZSU7                795^0    2^0                   795^0    795^0

ZSX7                 813^2    6^0                   814^0    806^6

ZMK7                215.9    1.4                    216.0    214.2

ZMN7                220.9    1.5                    220.9    219.4

ZMQ7               222.4

ZLK7                 32.66    0.29                  32.67    32.33

ZLN7                 33.20    0.27                  33.20    32.88

ZLQ7                33.16

Early Opening Calls: 5 to 6c higher; Soymeal $1.50 to $2.00 higher; Soyoil
25 - 50c higher

Top News

-- Heavy rains delay Argentine crop harvests:  only 11% of soybean acres
harvested (+1% more than last week, -10% behind last year), acc. to the BAGE

-- Brazilian soybean harvest picked up the pace a bit, +9% over last week to
60% harvested;  this is +12% faster than last year, acc. to Celeres

-- Brazil soy exports down to 2.05 mil tons in March;  this represents a
-23% decline from similar time last year

-- Funds Tuesday sold 6,000 Soybeans, 4,000 Meal, 4,000 Oil.

-- Malaysian Palm: set new 8 yr higher at $612/T a price that hasn't been
touched since 1999.  Traders worry over supply slowdown compared to export
pace.



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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