Linn Group Morning Soybean Comment

CHICAGO - May 3/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Wednesdays session closed with July soybeans lower by 7 ¾ cents. Traders say
it was more of the same, burdensome stocks and potential increase in planted
US soybean acreage this year if producers cannot plant corn. Meal led
product weakness ending $2.60 lower and oil lost 22 cents. Traders report
continued Oil meal spreading is pressuring meal. Also weakness in New York
crude oil market is being blamed for weakness in soybean oil.  It was a
light volume inside day with estimated volume at 87,318 soybean futures,
32,018 meal and oil volume 36,305. Funds sold an estimated 3,000 soybeans,
3,000 oil and 2,000 meal.

A sharp rally overnight in soybean oil has the market called higher. Surging
worldwide vegoil demand continues with heavy fund trade in Canola, Palm and
soybean oil. Export sales released today show old crop sales – 70,700 mt.
and new crop sales of 542,000 mt. The negative old crop sales are due to
China rolling old crop sales to new crop sales.  Near term weather calls for
Increased rain leading to planting delays in the Midwest, especially in the
Dakotas, western Minnesota and parts of Iowa. Technical traders point to
support for July Soybeans at $ 7.00 to $ 7.10. Overnight Chinese soybeans
closed flat, Meal higher. Malaysian Palm oil futures closed higher.

eCBOT Overnight

Contract            Last      Net Change       High      Low

ZSK7                733^6    -0^4                  733^6    730^4

ZSN7                751^2    2^6                   751^4    744^4

ZSQ7                756^0    0^2                   756^0    756^0

ZSU7                763^4    2^0                   763^6    760^2

ZSX7                 779^2    2^2                   779^6    773^0

ZMK7                195.9    0.0                    195.9    195.9

ZMN7                201.4    0.3                    201.4    199.5

ZMQ7               202.5    -1.6                   202.5    202.5

ZLK7                 33.05    -0.02                 33.15    33.05

ZLN7                 34.04    0.45                  34.09    33.48

ZLQ7                34.23    0.41                  34.30    33.86

Early Opening Calls: 1 to 3c higher; Soymeal slightly lower; Soyoil 25 - 50c
higher

Top News

**USDA Soybeans 06/07 Export Sales Net: -70,700 mt; expected 200-350,000

**USDA Soybeans 07/08 Export Sales Net: 542,000 mt

**USDA Soybean Meal 06/07 Export Sales Net: 119,100 mt; expected 75-150,000

**USDA Soybean Oil 06/07 Export Sales Net: 3,500 mt; expected Unch-25,000

**US Census Soyoil Stocks pegged at 3.366 bln lbs; Census March Oilseed
crush report showed 3.354 bln lbs

-- Dorab Mistry, director at Godrej International, said today that palm oil
may hit 2,500 ringit ($731) a ton this year on demand from China and India.

-- Argentine grain carryover pegged at 17.23 mil tons for March - up +24%
from last estimate, but down -10% from last year same time

-- Dalian Soybean futures on holiday

-- June 6th to mark the first trade date of a $USD crude palm oil contract,
created by JADE - expected to be traded on e-CBOT, acc. to a company
statement

-- Malaysian palm oil gained +3.8% overnight to $672/ton, which marks an 8
and a half year high; on bullish export figures and positive comments from
analysts

-- eCBOT Vol. 50,395; Pit Vol. 35,227; Open Interest Change: -1363

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

Cash Markets

            Bean Barge       Corn Barge        SRW Barge       HRW Track
Ill Riv Frt

May      -2/+4 N            +22/25 N             +3/?? N           +75/ N
215

June     +7/11 N             +28/30 N             +3/?? N           +55/ N
225

July      +12/16 N           +33/36 N             +5/?? N           +55/ N
250

Truck    Beans  Corn    Wheat  Meal Hi-pro        Oil

Chicago            -35 N   -6 N     -40 N

Toledo   -40 N   -19 N   -52 K

Dec ILL -30 N   -10 N                -12 N              -200 N



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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