Linn Group Morning Soybean Comment

CHICAGO - Apr 5/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

May soybeans closed 2 ¾ cents lower on Wednesday in spite of 13 cent higher
close in Corn and 12 ¼ cent higher close in Wheat. Traders say the weather
is bearish beans and bullish corn. Volume was moderate to heavy with an
estimated 102,701 soybean futures traded and 20,392 options traded. Funds
sold an estimated 3,000 soybeans, 1,000 meal and bought 2,500 oil.

The attention has now turned to weather now that the USDA planting intention
report is behind us. The concern now is that due to the wet, cold weather
farmers may abandon some corn plantings to grow soybeans and that could lead
to a larger  2007 US soybean crop. Thus making this current weather
situation, bearish beans, bullish corn. Traders say the window to sow the
corn crop is from roughly early April through mid-May to realize maximum
yield potential. If the corn does not get planted due to bad weather the
farmer will plant beans. This morning weekly export sales released were
below analysts estimates at 259,000 and the range of expectations was
300,000 to 600,000. Chinese soybean futures closed unchanged. Malaysian Palm
oil futures closed lower.  Early calls are 1 to 2 higher

eCBOT Overnight:

Contract            Last      Change High      Low

ZSK7                763^4    2^4       764^0    760^2

ZSN7                779^2    1^4       780^0    776^4

ZSQ7                784^4

ZSU7                790^0

ZSX7                 807^4    2^2       808^2    804^6

ZMK7                213.4    0.2        213.5    212.1

ZMN7                218.8    0.6        218.8    217.5

ZMQ7               221.0

ZLK7                 32.65    0.08      32.69    32.52

ZLN7                 33.22    0.11      33.22    33.11

ZLQ7                33.38    0.04      33.38    33.38

Early Opening Calls: 1 to 2 cents higher.

Top News:

**USDA Weekly Export Sales 4/5, Soybeans:  259k, expected = 300k=350k

**USDA Weekly Export Sales 4/5, Soybean Meal:  121.7k expected = 75k=125k

**USDA Weekly Export Sales 4/5, Soybean Oil:  13.8k, expected = 0-10k

-- US Census Bureau sees Feb US soybean oil stocks at 3.284 bil lbs, +3.2%
over last month's revised number

-- '06'07 Indian Soymeal Exports reach 3.6 mil tons, +5.88% higher than last
year, acc. to SEA of India

-- '06'07 Indian Oilmeal Exports reach 5.2 mil tons,  +18.2% higher than
last year, acc. to SEA of India

-- CONAB:  Brazilian soybean production seen reaching 58 mil tons, +2.3%
from previous estimates

-- Malaysian palm oil dipped -1.2% to $606/ton on profit-taking after record
price levels seen

-- Funds sold an estimated 3,000 contracts of soybeans Wednesday.

-- Soybean spreads: Term 500 SN/SX, Abn 500 SN/SX, Tenco 400 SK/SN, FCs 700
SK/SN

-- Outside markets:  Gold trading  higher $673.00  up  .90, Crude Oil
trading slightly higher  $64.42 up  .04, Dollar steady, Chinese ag futures
unchanged

Cash Markets:

CIF Soybeans:  Apr. +15 to +19, May. +17 to +20, June +7 to +12. July +11 to
+20, Aug. +12 to ??. Oct. +22 to +26

River house steady weak  STL  off 2 at –12, Morris IL. River  steady at –27,
Havana off 2 at –28.

Processors: Decatur  -23   Danville –23   Bloomington –25  Gibson City –20

Board Crush Margins:     May  66.31 up  2.09   July  66.50 up  2.09



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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