Linn Group Morning Soybean Comment

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

Soybeans ended the week last week unchanged from the previous day in both
May and Nov. A narrow 7 ½ cent range was the highlight in a quiet 2 sided
trade. Oil has been the strength in the soybean complex but failed to spark
any enthusiasm losing 15 to 18 cents lower and meal unchanged. Fund activity
was light on Thursday as well, with funds ending the session selling 1,000
oil, even in soybeans and meal.

The focus today is centered around some serious freeze damage to wheat and
corn over the long Easter holiday weekend. The cold weather was widespread
and plunging into the southern states. Traders say the extent of the damage
will not be know for weeks. They say that the corn acres that are a total
loss will get replanted. All of this has corn and wheat prices sharply
higher overnight and soybeans caught up in the price rise up over 9 cents
overnight. The long term effect of all this could be that soybeans benefit
from an increase in planted acres if farmers have to replant. Tuesday
Morning the USDA will release a monthly supply and demand report. This
afternoon the USDA will release the first corn planting progress today and
could be the first indication of how things are going. Malaysian Palm oil
futures jumped more than 1% last night to a new eight year high. Overnight
Chinese soybean, meal and oil futures closed unchanged.

eCBOT Overnight:

Contract            Last      Change High      Low

ZSK7                769^6    9^2       775^0    765^2

ZSN7                785^2    8^0       790^6    780^4

ZSQ7                795^0    12^0      797^0    790^0

ZSU7                800^0    10^0      805^0    798^0

ZSX7                 814^0    9^2       819^0    807^0

ZMK7                215.6    2.6        217.8    214.4

ZMN7                221.1    2.7        223.4    219.8

ZMQ7               224.1    3.1        224.1    224.1

ZLK7                 32.62    0.20      33.00    32.51

ZLN7                 33.19    0.26      33.53    33.05

ZLQ7                33.45    0.27      33.45    33.45

Early Opening Calls: 7 to 10 cents higher, Oil 20-30c higher, Meal $2-3
higher.

Top News:

-- Average estimates for Tuesday’s USDA supply and demand report: Soybeans
586 vs. 595 in March and 449  last year.

-- Overnight, Malaysian palm oil contracts rose +1.1% to $619/ton, an over 8
year high, on CBOT futures strength

-- Outside Markets:  Gold trading  higher $673.00  up  .90, The Dollar is
trading steady vs. the Yen and Euro.  Crude down 37 cents to $63.91.

-- Funds aggressive in Corn and wheat Friday buying 6,000 Corn and 3,000
Wheat.  Funds Sold 1,000 Oil.  Even Soybeans, Even Meal.

-- Soybean spreads: JPM 800 SK/SN, ABN 800 SK/SN, Term 800 SK/SN, Fimat
1,600 SK/SN.

Cash Markets:

CIF Soybeans:  Apr. +10 to +14, May. +14 to +19, June +7 to +12. July +11 to
+20, Aug. +12 to +20,. Oct. +22 to +25

River house  weaker  STL  off 4 at –16, Morris IL. River off 5  at –34,
Havana off 5 at –34.

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

Board Crush Margins:     May  64.72 off  1.59   July  65.46 off  1.04



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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