Linn Group Morning Soybean Comment

CHICAGO - Apr 10/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

After a strong open Soybeans ultimately succumbed to an overall bearish
fundamental situation closing down 11 ½ cents. .This weekends weather which
caused problems for corn and wheat has cast a bearish tone for soybeans.
Traders say there is definitely damage to wheat and it will take a week or
so to see how the crop reacts before we will know how much damage has
occurred. Frost damage to corn and wheat has the potential to entice farmers
to plant more soybean acres this spring despite what the USDA planting
intentions report showed. USDA export inspections released yesterday show
that 20.2 mil. bu. of soybeans were inspected for export last week, above
trade estimates for 12 to 17 mil bu. Volume was heavy Monday with an
estimated at 162,361 soybean futures traded and 20,699 options. Funds sold
an estimated 3,000 soybeans, 2,000 oil and 1,000.

Today’s focus continues to be weather and how much corn and wheat damage
occurred with the cold weather. Today the USDA released the April supply and
demand report. The report shows U.S. soy ending stocks for 2006/07 at a
level above expectations. USDA pegged 2006/07 U.S. soy ending stocks at 615
million bushels, above an average of analysts' estimates for 585 million and
above USDA's forecast in March for 595 million. Chinese customs officials
report say China’s March Soybean imports at 2.1 mmt. down 18% form last
year. Overnight, Chinese soybean futures closed lower. Malaysian Palm oil
futures closed higher.

eCBOT Overnight

Contract            Last      Net Change       High      Low

ZSK7                751^4    2^4                   753^0    749^0

ZSN7                768^2    1^6                   769^2    765^6

ZSQ7                774^2    1^4                   774^2    773^0

ZSU7                780^6    2^2                   780^6    775^4

ZSX7                 796^2    3^0                   797^0    793^0

ZMK7                209.8    0.4                    210.0    209.0

ZMN7                215.1    0.3                    215.3    214.6

ZMQ7               218.0    0.4                    218.0    218.0

ZLK7                 32.15    0.07                  32.29    32.05

ZLN7                 32.73    0.06                  32.84    32.63

ZLQ7                32.92    0.04                  32.94    32.92

Post Report Opening Calls: 3 to 5c lower

USDA/WASDE Report

-----------------

**US Apr Soybean 06/07 Carryout:  0.615 bln bu. ; est. 0.59; Mar Rpt 0.595

**US Apr Soymeal 06/07 Carryout: 300k tons ; Mar Rpt 300,000 T

**US Apr Soyoil 06/07 Carryout: 2.794 bln lbs. ; Mar Rpt 2.664

**World 06/07 Soybeans Carryout: 61.02 mmt; Mar Rpt 57.50

**World 06/07 Soyoil Carryout: 2.76 mmt; Mar Rpt 2.71

**World 06/07 Soymeal Carryout: 5.02 mmt; Mar Rpt 4.62

**Apr Argentina 06/07 Soybean Output: 45.5 mmt; Mar Rpt 44.0

**Apr Brazil 06/07 Soybean Output: 58.8 mmt; Mar Rpt 57.0

**Apr China 06/07 Soybean Output: 16.2 mmt; Mar Rpt 16.2

Top News

-- China’s March Soybean imports at 2.1 mmt. down 18% from last year.
Soybean imports for the first three months of year are up 5.7% vs. last year

-- China's customs bureau said today that the March trade surplus only rose
$6.87 billion, 38% smaller than the gap a year earlier.

-- Funds sold 3,000 Soybeans, 2,000 Oil, 1,000 Meal.

-- Dalian Soybean Markets were lower overnight; soymeal & soyoil also lower.

-- Malaysian Palm crude oil higher overnight, stocks tighter, demand up.

-- eCBOT Vol. 94,052; Pit Vol. 68,969; Open Interest Change: -3,526

-- Weather: Below Normal Temps. Above Normal Precip. 6 - 10 day shows.

-- Outside markets: Energy higher, US $ lower, Gold & Silver higher

Cash Markets

-- CIF Soybeans:  Apr. +9 to +14, May. +12 to +19, June +6 to +14. July +11
to +20, Aug. +12 to +20,. Oct. +20 to +25

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



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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