Linn Group Morning Soybean Comment

CHICAGO - May 1/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybeans closed 4 ½ cents higher in the July contract posting their highest
close in 2 weeks. The market rebounded from a weaker open and rallied as
soybean oil closed into new highs. Traders say the release of the Weekly
export inspections was mildly supportive. The USDA reported 14.9 mil. bu. of
US soybeans were inspected vs. estimated for 10 to 15 mil. Traders say funds
are buying veg oils with fund activity reported to be heavy in canola, palm
oil and soybean oil. Fund buying helped propel soybean oil to new contract
highs. Volume was heavy in Monday with an estimated 123,896 soybean futures,
49,549 soybean oil and 35,339 meal traded. Funds bought an estimated 3,000
soybean futures, 1,000 meal and 4,000 Oil.

Monday afternoon the USDA released their weekly crop progress reports
showing soybean planting estimates at 3% complete. This compares to 9% last
year and 7% normal. More importantly the corn planting progress was only 23%
complete compared to 48% last year and an average of 42% complete at this
time of the year. The concern is that yields will be greatly diminished in
corn if they cannot get this crop planted by the middle of this month. For
the past 3 weeks the focus has been on planting delays in corn continue to
add acres to soybeans. Traders say the strength in soybeans has little to do
with the acreage battle and is more about vegoil demand worldwide. Overnight
Chinese Soybean futures closed flat, and meal closed higher. Malaysian Palm
oil futures closed firm.

eCBOT Overnight

Contract            Last      Net Change       High      Low

ZSK7                727^0    -1^4                  728^4    726^0

ZSN7                742^0    -1^0                  744^0    740^0

ZSQ7                748^6    -0^6                  749^6    748^6

ZSU7                756^0    0^0                   756^0    756^0

ZSX7                 770^0    -0^6                  771^6    768^4

ZMK7                193.0    0.2                    193.0    193.0

ZMN7                198.6    -0.2                   199.8    198.0

ZMQ7               201.4

ZLK7                 33.12    -0.23                 33.35    33.12

ZLN7                 33.64    -0.13                 33.77    33.57

ZLQ7                33.91    0.04                  33.91    33.91

Early Opening Calls: beans ½ to 1 cent lower; soymeal 0.20 higher; soyoil
0.05 to 0.10 lower.

Top News

-- Soybeans % Planted:  3%; 2% week ago; 9% yr ago week; 7% 5 yr avg.

-- Celeres sees 95% of Brazil soybean crop harvested vs 88% seen last week,
ahead of 89% seen year ago

-- Celeres sees 59% of Brazil soybean crop sold vs 57% seen last week, but
behind 65% seen year ago

-- Rapeseed damage from European drought still driving higher prices.

-- ADM reported 3Q eps 56c vs yr ago quarterly eps of 53c, but below street
expectations of 61c/share on lower oilseed crushing margins.  Analyst
covering the stock says the company did cover rising corn costs well.

-- Chinese authorities refuse to increase minimum price paid to farmers for
internal procurement of corn, wheat and rice, acc. to China news agencies

-- Monday's Soybean Weekly Export Inspections: 14.935 mln bu.; avg
expectation 12.5 mln bu.

-- CBOT May Soybean futures deliveries: 1081; soyoil deliveries: 1179;
soymeal deliveries: 465

-- Brazil and Venezuela agree to ethanol pact - Venezuela to import
Brazilian ethanol despite previous comments by Venezuelan leadership
criticizing Brazil's food vs. fuel policies, acc. to statements by both
countries

-- An estimated $70-200 billion have been invested in commodity-related
products - the number was around $10 billion in 2002, acc. to analysts

-- Dalian Soybean futures closed May 1 - 7

-- Shipping experts say upcoming large ship deliveries will help lower
shipping costs in 3 yrs time by 40%.  Hedge fund operator (& former shipping
exec) see current shipping rates falling in the near & long term

-- Port manager in Malaysia port of Pasir Gudang expects growth of palm
exports near 7-10% this year compared to last year.

-- eCBOT Vol. 68,179; Pit Vol. 56,050; Open Interest Change: +359

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

Cash Markets

            Bean Barge       Corn Barge        SRW Barge       HRW Track
Ill Riv Frt

Apr       +10/12 K           +33/36 K             +15/20 K         +65/80 K
225

May      +12/16 K           +34/37 K             +16/20 K         +60/80 K
225

Jun       +8/142 N           +30/32 N             +4/7 N            +55/65 N
250

Truck                Beans   Corn     Wheat  Meal Hi-pro        Oil

Chicago                       -25 K    -6 K     -38 K

Toledo              -26 K    -20 N   -50 K

Dec ILL            -30 N    +0 K                -14 N               -200 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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