Linn Group Morning Soybean Comment

CHICAGO - Apr 11/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

For the 5th.  consecutive session soybeans closed lower down 6 ½ cents in
the May contract. May soybeans posted their lowest close since Feb 1st. The
market was pressured early by the USDA report released before the open as
traders say that the usage numbers were down and South American crop
production was up. Also bearish for soybeans is the delay in planting US
corn this spring due to cold wet weather. Traders say if you continue to
delay corn planting it means more beans. If wheat damage turns out to be as
bad as anticipated it means more bean acres. The fundamentals overall are
bearish for the Soybeans traders say. Tuesdays volume was heavy with an
estimated 162,150 futures traded and 42,618 options traded. Funds sold 3,000
soybeans and bought 5,000 meal and 2,000 oil.

Informa economics issued a new 2007 production report, estimating soybean
production at 2.852 bil. bu using 67.1 mil acres planted and 66.3 mil acres
harvested.  Hamburg based Oil world issued a report saying China will likely
import more soybeans in the coming year as Chinese farmers cut soybean
plantings and switch to more corn production. They also say a global soybean
supply deficit is possible in 2007/08 due to lost supplies as US farmers
switch to corn. Overnight Chinese soybean and meal futures closed  weak.
Malaysian palm oil futures closed higher.

eCBOT Overnight

Contract            Last      Net Change       High      Low

ZSK7                746^6    4^2                   748^4    743^4

ZSN7                764^0    3^4                   765^2    760^4

ZSQ7                771^0    5^4                   771^2    765^4

ZSU7                778^2    5^2                   779^2    775^4

ZSX7                 792^2    4^6                   793^6    788^4

ZMK7                205.5    0.7                    205.9    204.8

ZMN7                211.1    0.4                    211.6    209.9

ZMQ7               214.3    0.8                    215.5    214.3

ZLK7                 32.58    0.12                  32.75    32.40

ZLN7                 33.13    0.11                  33.31    32.97

ZLQ7                33.39    0.16                  33.42    33.39

Early Opening Calls: 3 to 5c higher; Meal 50c higher; Soyoil 10 to 20c
higher

Top News

-- 2007 US Soybean production estimated at 2.852 bil.bu. by Informa.  They
expect 66.3 mil. acres harvested of the 67.1 mln acres planted.

-- Oil World expects China to import more soybean & soyoil as less acres are
devoted to the oilseed & attention turned to planting corn.  They expect
plantings to fall to 8.6 mln ha, a decline of 0.5 mln ha.

-- Reuters is reporting that period charter rates for modern panamax
tonnages plying the transpacific route are about $42,000, or about 10%
higher than the end of March.

- An 8 year, $22.5 mln biofuel research grant given to Iowa State by
ConocoPhilips

-- eCBOT Vol. 89,663; Pit Vol. 75,916; Open Interest Change: -1,828

-- Weather Normal to Below Temps. Normal to below Precip. the 6 to 10 day
shows

-- Outside markets.  Energy markets  slightly higher ahead of weekly stocks
report; US $ slightly higher against Euro & Yen ; Gold & Silver higher

Cash Markets

-- CIF Soybeans:  Apr. +10 to +14, May. +16 to +19, June +9 to +12. July +14
to +19, Aug. +13 to +20,. Oct. +18 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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