Linn Group Morning Soybean Comment

CHICAGO - May 4/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybeans closed ¾ of a cent lower on Thursday on the heels of a late break
in corn. Traders say corn has resumed its leadership role in the grain
complex and with a new wave of rain forecast for the western corn belt
concerns turn once again to planting progress. Early in yesterdays session
corn rallied  16 ¾ cents after gapping higher taking soybeans with it. At
one point in time yesterday soybeans were a dime higher but could not hold
their gains breaking down in the last hour of the trading session to close
lower on the day. Traders say weather should continue to dominate the trade
for the next several weeks and to get used to this type of volatility. Funds
on Thursday bought 1,000 soybeans, 1,000 oil and even in meal.

 Another round of wet weather is due for the western corn belt causing
concern for planting progress. Traders will continue to watch corn for
direction as seedings have been delayed due to wet weather. A Chinese
delegation will sign contracts on May 14th to buy more than 8 mil mt of
soybeans with US exporters, officials said on Thursday at the Chicago Board
of trade, where the signing will take place.  Big deliveries against the May
soybean complex Thursday underscores the ample cash supplies traders say.
Spot basis bids for soybeans in the US Midwest were steady to firm on
Thursday. Overnight Chinese Soybean futures closed flat to firm, Meal
higher. Malaysian Palm oil futures closed mixed.

eCBOT Overnight

Contract            Last      Net Change       High      Low

ZSK7                732^0    -1^6                  735^0    732^0

ZSN7                746^6    -1^0                  749^6    745^0

ZSQ7                754^0    -1^4                  755^4    753^6

ZSU7                763^0

ZSX7                 776^0    -0^6                  778^4    773^4

ZMK7                194.3    -0.4                   194.7    194.3

ZMN7                200.1    -0.5                   201.0    199.8

ZMQ7               203.5    0.2                    203.5    203.5

ZLK7                 33.05    -0.12                 33.19    33.05

ZLN7                 33.68    0.05                  33.75    33.51

ZLQ7                33.98    0.14                  33.98    33.78

Early Opening Calls: 1 to 2c lower; soyoil mixed; soymeal steady to 50c
lower

Top News

-- Japan Ag minister proposes to use up to 10% ethanol, up from the
voluntary 2% blending requirements currently in place.

-- Egypt purchases 12,000 mt of soyoil & 6,000 mt of sunseed oil from Bunge
& Nidera respectively, traders say.  Tender allowed for optional origin &
June delivery.

-- S Korean feed assoc member remarks sharply higher shipping costs are
making grain merchandisers double think buying decisions.

-- Traders report Israel buys 7,000 mt of soymeal & 35,000 mt of corn
products (gluten & DDG)

-- Dalian Soybean futures on Holiday

-- July crude palm oil futures fell 0.7% in overnight Malyasian trade

-- eCBOT Vol. 50,615; Pit Vol. 39,108      ; Open Interest Change: -96

-- May Soybean CBOT Daily Deliveries: 1,107; Soyoil NONE; Soymeal 380

-- Outside markets. Energy higher; US $ mixed to lower; Gold & Silver:
higher

Cash Markets

            Bean Barge       Corn Barge        SRW Barge       HRW Track
Ill Riv Frt

May      -5/+1 N             +24/26 N             +3/?? N           +60/ N
215

June     +3/10 N             +28/31 N             +3/?? N           +55/ N
225

July      +12/17 N           +32/36 N             +5/?? N           +55/ N
250

Truck                Beans   Corn    Wheat              Meal Hi-pro
Oil

Chicago                       -35 N    -0 N     -40 N

Toledo              -40 N    -19 N   -50 K

Dec ILL            -30 N    -5 N                            -10 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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