Linn Group Morning Soybean Comment

CHICAGO - May 8/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

July Soybeans ended Mondays session down a nickel after an initially higher
open traded lower on the day 10 minutes into the session. Traders say the
weakness was in direct response to a falling corn market as improving
planting weather initiated the corn weakness. Export inspections for
soybeans were also disappointing, USDA reported that 11.032 mil. Bu of
soybeans were inspected for export within estimates for 10 to 15 mil. bu.
Volume was on the light side with an estimated 82,298 soybean futures
traded, 28,867 oil and 28,503 meal. The release of Monday afternoons crop
progress report is partially responsible for the low volume as traders were
reluctant to commit until the important crop progress numbers were released.
Funds on Monday sold an estimated 2,000 soybean futures, 4,000 oil and 1,000
meal.

The weekly crop progress report released after Mondays close show soybean
planting at 10% complete vs. 17% this time last year and 17% average.
Perhaps more important the corn crop progress showed to be 53% complete
which was 30% increase in one week the largest weekly increase in the last
15 years and well above estimates as low as 40% complete by some analysts.
This caused a 10 cent break overnight in corn and 4 ¼ cent weaker soybean
market overnight. Next weeks number will be very important as optimum
planting dates for corn run May 10th to the 15th. Brazil grain analyst
Celeres raised their estimate for Brazil Soybean production to a record 58.5
mmt vs the previous estimate of 58.5 mmt. they also estimate harvest at 98%
complete. Overnight Chinese soybeans closed mixed to mostly lower, meal
closed weak. Malaysian Palm oil futures closed mixed to lower.

eCBOT Overnight

Contract            Last      Net Change       High      Low

ZSK7                722^0    -7^0                  730^0    722^0

ZSN7                738^2    -4^2                  739^6    734^0

ZSQ7                745^4    -4^2                  746^6    741^6

ZSU7                753^2    -3^2                  753^2    749^0

ZSX7                 767^2    -5^0                  769^0    763^0

ZMK7                195.7    0.0                    195.7    195.7

ZMN7                200.9    -0.6                   201.0    198.9

ZMQ7               202.9    -1.5                   203.0    202.1

ZLK7                 32.43    -0.08                 32.53    32.43

ZLN7                 32.87    -0.17                 33.04    32.81

ZLQ7                33.12    -0.16                 33.12    33.05

Early Opening Calls: 4 to 6c lower; soymeal 50c to $1 lower; Soyoil 10-20c
lower

Top News

--Soybean Progress & Conditions Mini-Recap--

Soybeans % Planted:  10%; 3% week ago; 17% yr ago week; 17% 5 yr avg.

-- Phillippine millers consortium tenders to purchase 51,000 mt of soymeal
Wednesday May 8

-- 58.5 mln mt of soybeans grown in 06/07 Brazil, due in part to the 14%
increase in yields vs the prior season, agribusiness analyst Celeres says

-- Brazil analyst notes decelerating soybean sales; reports 60% of crop has
been sold 6% points behind last year in same time period Celeres reports.

-- 506,213 mt of soyoil was shipped in Feb 07 from Argentina, up from year
ago Feb exports of 369,231 mt

-- 2007 Nat'l Soybean Rust Symposium scheduled for Dec 12-14, 2007 in
Louisville, KY, will cover topics from genetics, disease resistent variety
development, disease mgmt, & and other important areas.

-- Brazilian shipping delays translate into full storage capacity with long
lines at the silos;  many trucks kept waiting for hours.  Strong Brazilian
currency blamed for slower sales on record crop

-- Funds aggressive sellers of Corn Monday selling 9,000 contracts. Funds
also sold 2,000 Soybeans, 1,000 Wheat, 4,000 Oil, 1,000 Meal.

-- USDA May 7th Grain Inspections, Soybeans: 11.03 mil bu, expected = 12.5
mil bu, previous = 14.9 mil bu

-- CBOT May Soybean Deliveries: 1,144

-- CBOT May Soyoil Deliveries: 164

-- CBOT May Soymeal Deliveries: 393

-- Dalian Soybean futures finished Tuesday lower; soymeal was mixed, while
soyoil closed lower.

-- Malaysian palm oil down again slightly (less than 1%) on profit taking -
finished overnight at $657/ton

-- eCBOT Vol. 56,793; Pit Vol. 25,505; Open Interest Change: -1,122

-- Weather: Above Normal Temps. Normal Precip.

-- Outside markets. Energy ; US $  ; Gold & Silver

Cash Markets

-- CIF Soybeans:  May. -8 to Option, LH May –3 to Option, June +2 to +8,
July +10 to +16,

Aug. +10 to +18,. Oct. +22 to +27

-- Processors: Decatur  -30   Danville –32   Bloomington –30  Gibson City
–30

-- Board Crush Margins:     May  59.15 up .43  July  64.24 up  1.37



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/

DISCLAIMER: Futures and options trading involve substantial risk. The valuation of futures and options may fluctuate, and as a result, clients may lose more then their original investment. In no event should the content of this website be construed as an express of an implied promise, guarantee or implication by of from the Linn Group, Inc. that you will profit or that losses can or will be limited in any manner whatsoever. Past performance is not necessarily indicative of future results. Information provided on this website is intended solely for informative purposes and is obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.

Information on this page is derived from third parties and is deemed to be reliable. STAT Communications Ltd. accepts no responsibility for errors, omissions or inaccuracies in any of the material presented on this web site. Opinions expressed on this web site are those of the respective individuals and/or institutions and do not represent the opinions of STAT Communications Ltd. or its management.