Linn Group Morning Soybean Comment

CHICAGO - Apr 16/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybeans finished the week down ¼ cent on Friday to end a lackluster trading
session after trading in a 10 ¾ cent range. The close of May soybeans at 738
is the lowest weekly close since beginning of February. Talk continues to
center around damage to the wheat crop and suspicions that farmers will give
up on the wheat crop and plant soybeans adding to an already burdensome
supply. Bean oil is the leader as it continues to trade higher. Most of the
support in bean oil is from Malaysian Palm oil which made 8 year highs last
week. Volume on Friday was heavy with an estimated 150,825 futures traded.
Funds  bought 2,000 soybeans, 3,000 oil and sold 2,000 Meal.

Toda the NOPA Crush report was released for March at 147.991 mil. bu. above
analyst estimates of 143.0 mil bu to 145.0 mil bu. This afternoon the Wheat
condition report will be released along with crop progress which should have
a lot of impact with this weeks trade. Talk this morning is that while we
expect a lower trade today that volumes could be low in front of this
afternoons important stats. The commitment of traders report with options as
of April 10th. sghows funds long 72,302 off 15,801 and meal long 22,685 off
5227 and Oil long 86,091 up 3,801. The supplemental index fund report shows
soybeans long 136,017 off 797. Overnight Chinese soybeans and meal closed
lower. Malaysian Palm oil closed sharply higher.

eCBOT Overnight

Contract            Last      Net Change       High      Low

ZSK7                732^6    -5^2                  736^6    730^2

ZSN7                750^0    -5^0                  753^2    747^4

ZSQ7                759^4    -3^4                  759^4    755^4

ZSU7                763^2    -6^6                  763^6    763^2

ZSX7                 779^0    -4^6                  782^6    777^0

ZMK7                198.3    -1.0                   198.7    196.7

ZMN7                202.3    -2.4                   204.2    202.3

ZMQ7               205.5    -2.0                   207.0    205.5

ZLK7                 33.00    0.03                  33.22    32.79

ZLN7                 33.63    0.06                  33.78    33.34

ZLQ7                33.98    0.22                  33.98    33.67

Early Opening Calls: 3 to 5c lower; soymeal lower; soyoil slightly higher

Top News

**NOPA March Soybean Crush: 147.991 mln bu. vs 130.779  mln bu in Feb

**NOPA March Soybean Meal Exports 483,046 T vs 488,642 T in Feb

**NOPA March Soyoil Stocks: 2.933 bln lbs. vs 2.820 bln lbs. in Feb

-- India lowered import duties on crude & refined palm oils in bid to keep
check on inflation in that country.

-- March soyoil imports pegged at 220,000 T, Chinese customs says.

-- Dalian Soybean futures lower; soymeal was lower inline with CBOT markets;
while soyoil stayed in positive territory.

-- Malaysian Palm higher after data shows exports increased.

-- eCBOT Vol. 98,800; Pit Vol. 52,825; Open Interest Change: +5,103

-- Weather Normal to Above Temps. Normal to Above Precip., the 6 - 10 day
shows.

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

Cash Markets

-- CIF Soybeans:  Apr. +8 to +10, May. +15 to +19, June +8 to +12. July +16
to +19, Aug. +13 to +20,. Oct. +21 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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