Linn Group Morning Soybean Comment

CHICAGO - Apr 12/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybeans posted a 4 cent higher close on Wednesday the first higher close in
a week. Traders say beans benefited from weather forecasts showing improving
planting weather going forward. If the weather does in fact improve then
projected corn acres will get planted limiting acreage commitments to
soybeans. Bean oil demand has been firming driven by 8 year highs in palm
oil prices. Asian demand along with increases in bio-fuel use has been
driving the price of veg oils worldwide. Soybean oil has been gaining on
meal all weak as firms are spreading oil/meal traders say. Volume was heavy
in soybeans on Wednesday with an estimated 134,321 soybean futures traded
and 25,410 options. Funds bought an estimated 4,000 soybeans, 2,000 oil and
sold 2,000 meal.

Soybean export sales released today show net sales of 137,000 mt a marketing
year low. This is 47% below the week earlier and 64% below the prior 4 week
average. Analyst range of expectations for export sales was 200,000 to
400,000 mt. Analysts continue to assess damage to US wheat from the Easter
weekend freeze to determine how much of the crop was lost. Traders say
severely damaged wheat could be torn up to plant other crops particularly
soybeans, which could have bearish implications for soybeans. Overnight
Chinese soybeans and meal closed lower. Malaysian Palm oil futures closed
lower.

CBOT Overnight

Contract            Last      Net Change       High      Low

ZSK7                742^0    -4^4                  746^6    741^4

ZSN7                758^6    -5^2                  763^4    758^4

ZSQ7                766^0    -3^6                  768^2    766^0

ZSU7                777^0    0^0                   777^0    774^0

ZSX7                 786^2    -5^4                  791^6    786^2

ZMK7                203.5    -1.6                   205.0    203.4

ZMN7                209.5    -1.4                   210.7    209.4

ZMQ7               213.5    -0.5                   213.5    212.6

ZLK7                 32.64    -0.14                 32.78    32.57

ZLN7                 33.20    -0.12                 33.30    33.13

ZLQ7                33.48    -0.04                 33.48    33.48

Early Opening Calls: 3 to 5 lower.

Top News

**USDA Soybeans 06/07 Export Sales Net: 137,000 mt; expected 200-400,000

**USDA Soybean Meal 06/07 Export Sales Net: 172,500 mt; expected 50-120,000

**USDA Soybean Oil 06/07 Export Sales Net: 3,400 mt; expected Unch-10,000

-- Dalian Soybean futures pressured lower; soymeal lower; soyoil futures
were higher

-- Malaysian Palm oil futures lower overnight after profit taking on the
heels of recent gains.

-- eCBOT Vol. 73,377; Pit Vol. 63,092; Open Interest Change: -230

-- Weather : 6-10 day forecast calls for cold from Texas to Ohio with wet
from the Dakotas to Kansas and dry around the Great Lakes

-- Outside markets. Energy markets higher ; US $ lower vs Yen & Euro ; Gold
& Silver slightly higher

Cash Markets

            Bean Barge       Corn Barge        SRW Barge       HRW Track
Ill Riv Frt

Apr       +10/14 K           +24/27 K             +5/+? K          +84/90 K
240

May      +15/19 K           +30/32 K             +5 +? K          +84/90 K
240

Jun       +8/12 N             +25/28 N             -12/-9 N           +55/65
N           270

Truck                Beans   Corn    Wheat              Meal Hi-pro
Oil

Chicago                       -28 K    -12 K   -50 K

Toledo              -36 K    -21 K   -55 K

Dec ILL            -20 K    -15 K                          -12 K
-225 K



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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