Linn Group Morning Soybean Comment

CHICAGO - Apr 17/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybeans spent Mondays session on the defensive closing down 2 cents. After
the release of lackluster export sales and a neutral NOPA crush report
Soybeans continued to trade defensively on the news that wheat damage from
recent frost will pressure soybeans. Volume remains heavy in soybeans with
an estimated 99,452 futures traded and 20,865 options. Soybean oil volume
was especially heavy with 57,848 futures and 3,904 options. Monday was the
first time in several days that meal gained on oil as the oil meal spreads
have been a featured trade, traders say. Estimated fund trade shows funds
sold 1,000 soybeans, 2,000 Oil and bought 1,000 meal.

Yesterday after the close the USDA released crop condition reports and crop
progress. Planting progress for corn shows corn planting at 4% complete vs.
8% last year and 9% average with not much planted in the major growing
states of Il, IA NE, MN, OH. Early calls are for this to be bullish corn and
wheat and bearish beans. Traders continue to question how much damage was
done to wheat during the recent freeze. Brazil grain analyst Celeres
estimates Soybean harvest at 79% complete vs. 72% last year. Soybean Sales
to China have fallen sharply since early march due to the start of harvest
in South America. Cash traders say US soybeans are not competitive with
South American soybeans at this point due to harvest pressures in that
region. Overnight Chinese soybean and meal futures closed lower. Malaysian
palm oil futures closed lower on profit taking.

eCBOT Overnight

Contract            Last      Net Change       High      Low

ZSK7                731^4    -4^4                  737^6    731^2

ZSN7                748^4    -4^6                  754^4    748^0

ZSQ7                757^6    -2^2                  757^6    757^0

ZSU7                765^2    -2^0                  765^2    765^2

ZSX7                 778^0    -4^4                  784^0    778^0

ZMK7                198.0    -1.5                   200.0    197.9

ZMN7                203.6    -1.7                   205.3    203.5

ZMQ7               206.4    -1.7                   207.6    206.4

ZLK7                 32.56    -0.22                 32.86    32.52

ZLN7                 33.14    -0.22                 33.44    33.10

ZLQ7                33.58

Early Opening Calls: 2 to 4c lower; Soymeal $1 lower; Soyoil slightly higher

Top News

-- China's increased crush capacity to lead to a +15% spike in soybean
imports to 31 mil tons, acc. to CNGOIC analyst

-- Brazil grain analyst Celeres estimates Soybean harvest  79% complete vs.
72% last year. The estimate the producer has sold 55% of the crop vs. 60%
sold on this date last year.

-- Fund trade 1,000 Soybeans, 2,000 Oil.  Bought 1,000 Meal.

-- Dalian Soybean futures settle lower; Soymeal ended lower, however soyoil
remained in positive territory.

-- eCBOT Vol. 57,975; Pit Vol. 36,058; Open Interest Change: +94

-- Weather Normal to Above Temps. Normal to Above Precip.

 6 to 10 day outlook shows

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

Cash Markets

-- CIF Soybeans:  Apr. +10 to +12, May. +15 to +20, June +8 to +12. July +16
to +20, Aug. +13 to +20,. Oct. +24 to +28

-- 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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