Linn Group Morning Soybean Comment

CHICAGO - May 7/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

July soybeans just ¼ cent lower on Friday after trading in a narrow 9 ¾ cent
range. For the week soybeans ended 9 cents higher from the previous week.
Traders say changing weather forecasts have the market nervous awaiting to
see what this weekends weather brings to the western corn belt where all
eyes are on corn planting progress. Another round of heavy May soybean and
meal deliveries Friday underscores the weakness in the market, traders say.
Volume on Friday was light with an estimated 69,614 soybean futures traded,
35,071 soybean oil and 26,376 meal traded. Funds were about even in soybeans
and buyers of approximately 2000 contracts of soybean meal and sold 3,000
oil.

Today the market turns its focus to this afternoons crop progress report,
especially corn progress. Weather continues to dictate market direction this
time of year and the 6 to 10 day forecast calls for above to much above
normal temps in the corn belt and below normal precip. This could result in
good drying weather and farmers to get their planting done this week.  Corn
planters ran everywhere they could last week and over the weekend but
planting delays are around and farmers caution that corn planted after this
week suffers potential poor yields. Record breaking freight rates are being
reported and buyers in Asia are expected to be cautious. Soybean buyers in
Japan are estimated to have purchased 50% of their needs for June shipments
and traders say they will have to wait for China to return from a week-long
holiday on Tuesday before market activity picks up. Brazilian soybean
producers are selling sporadically but local port silos are full and slow
sales are being blamed on a weak dollar. Overnight Chinese soybeans closed
flat to firm, Meal closed higher. Malaysian palm oil futures closed lower
overnight.

eCBOT Overnight

Contract            Last      Net Change       High      Low

ZSN7                750^2    2^6                   753^4    748^6

ZSQ7                758^0    4^4                   758^0    758^0

ZSU7                765^4    4^4                   765^4    765^4

ZSX7                 779^4    3^2                   782^0    777^6

ZMN7                203.9    1.4                    205.0    202.2

ZMQ7               205.1

ZLK7                 32.73    0.01                  32.73    32.73

ZLN7                 33.17    0.00                  33.43    33.14

ZLQ7                33.46    0.06                  33.46    33.46

Early Opening Calls: 2 to 4c higher; soymeal steady to $1 higher; soyoil
steady to 10c higher

Top News

-- USDA weekly export inspections today.

-- USDA crop progress to be released this afternoon.

-- Friday will be USDA production & stocks estimate along with world
estimates.

-- Private analyst Informa estimates US Cotton Production:  21.57 mil bales

-- Brazil Ag minister estimated 07/08 ethanol production at 5.28 bln gals a
rise of 13%, vs the 06/07 sugarcane season

-- COPA Canada Canola Crush:  -5.5% from last week to 58,778 tons

-- COPA Canada Soybean Crush:  -10% from last week to 26,434 tons

-- Italian government issues state of emergency decree on drought in
northern/central regions, including key Po River Valley region, which
accounts for 1/3 of the country's ag production

-- Dalian Soybean futures back from week holiday Monday were unch to firm,
meal futures higher; soyoil higher also Monday.

-- Malaysian palm oil declined -1.9% overnight to $658/ton on profit-taking,
following nearly a decade high market value

-- eCBOT Vol. 37,344; Pit Vol. 32,270      ; Open Interest Change: +1,124

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

Cash Markets

            Bean Barge       Corn Barge        SRW Barge       HRW Track
Ill Riv Frt

May      -8/-4 N +25/26 N             +3/?? N           +60/ N
215

June       +3/6 N            +29/31 N             +3/?? N           +53/ N
225

July      +11/15 N           +33/35 N             +5/?? N           +53/ N
250

Truck    Beans               Corn     Wheat   Meal Hi-pro        Oil

Chicago            -35 N              -5 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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