Linn Group Morning Soybean Comment

CHICAGO - Apr 13/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybeans resumed their decline on Thursday closing 8 ¼ cents lower after a 1
day respite. May soybeans traded to lows not seen since January 30th.
Traders say that there are a number of overall bearish factors adding to the
weakness in soybeans. The overall weather situation, disappointing weekly
export sales, weakness in the US cash markets and a large South American
harvest are all contributing to the bearishness. Yesterdays trade was a high
volume trade with an estimated 199,220 soybean futures traded and 29,209
options. Oil and meal volumes were high as well with an estimated 81,650
soybean oil traded and 59,571 meal futures traded. Funds were active selling
an estimated 7,000 soybeans, 3,000 meal and 3,500 oil. Commercials bought an
estimated 5,000 soybean oil and some light commercial buying in soybeans and
meal.

The focus remains on the current  the weather situation as traders are
concerned that wheat damage will be more widespread. Soybean oil is the
leader in the bean complex led by surging palm oil prices. Reports from
China show their outlook for soybean and soybean meal remain bearish.
Chinese crushers say their outlook for soybeans is weak as crushers have
slowed imports amid high meal stocks. The US dollar has reached 2 year lows
today as the G7 meet in Washington. Overnight Chinese soybeans and meal
closed lower. Malaysian Palm oil futures closed higher.

eCBOT Overnight

Contract            Last      Net Change       High      Low

ZSK7                737^0    -1^2                  739^4    732^6

ZSN7                754^0    -2^4                  756^4    749^4

ZSQ7                758^6    -3^6                  761^0    758^6

ZSU7                766^4    -3^0                  768^0    766^4

ZSX7                 782^2    -2^2                  785^0    778^2

ZMK7                200.5    -0.4                   201.7    200.0

ZMN7                206.9    0.0                    207.0    206.2

ZMQ7               209.0    -0.9                   210.5    209.0

ZLK7                 32.79    0.14                  32.79    32.45

ZLN7                 33.35    0.15                  33.35    33.02

ZLQ7                33.28    -0.10                 33.31    33.28

Early Opening Calls: 1 to 2  cents lower.

Top News

-- Argentina soybean exports were only a tiny fraction in January 6,000 mt,
compared to the 701,000 mt seen year ago January.  Soyoil exports also fell
to 228,500 in January compared to Jan 2006 exports of 463,200 mt.  The gov't
report didn't have an explanation, but unofficially says exports will
rebound to normal levels.

-- India vegatable oil imports over latest 6 months rose 10% when compared
to year ago.

-- Funds are reportedly long 97,000 soybean contracts. 23,000 in soymeal &
82,000 in soyoil.

US Environmental Protection Agency passes ruling that would put
ethanol-for-fuel plants on the same emissions standards as ethanol-for-food
plants;  seen as beneficial for alternative fuel expansion

-- Dalian Soybean futures lower overnight on speculative selling.  Soymeal
futures were lower; soyoil mixed.

-- Malaysian Palm oil futures rose overnight along with the Indonesian oil
future markets.

-- eCBOT Vol. 119,211; Pit Vol. 83,090; Open Interest Change: +2,289

-- Weather shows Normal to Below Temps. Normal to Below Precip. over the
next 6 to 10 days.

-- Outside markets:   Energy higher ; US $ lower vs Yen & Euro; Gold &
Silver sharply higher

Cash Markets

-- CIF Soybeans:  Apr. +7 to +12, May. +14 to +19, June +8 to +12. July +13
to +19, Aug. +13 to +20,. Oct. +18 to +25

-- Processors: Decatur  -20   Danville –23   Bloomington –20  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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