Linn Group Morning Soybean Comment

CHICAGO - May 10/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

July Soybeans erased the losses of the last 2 trading sessions on Wednesday
closing 8 cents higher. It was a quiet session with extremely light volume
in comparison to the volumes the past few weeks. An estimated 66,618 soybean
futures traded Wednesday, 21,498 meal and 28,334 oil. Traders say improved
crop planting weather is at the forefront of the soybean rally as farmers
have been able to increase their corn acreage at the expense of soybean
acreage this spring due to good planting conditions. Funds bought
approximately 3,000 soybeans, 3,000 Oil and 2,000 meal.

Weekly export sales released today show net sales of 204,200 mt which was an
improvement from the previous week and 6% above the prior 4 week average.
Although this was at the lower end of analyst expectations of 200,000 to
350,000 mt.  Oil sales were at the lower end of expectations and meal was in
line. Traders indicate they expect todays trade to be quiet ahead of Fridays
USDA report. Average of  analyst estimated for US soybean ending stocks were
606 mil bu for 2006/07 and 336 mil. for 2007/08.Technicians point to a
support level of $7.30 and upside resistance of $7.50 for July soybeans and
indicate a close above or below these areas should dictate the next move.
Overnight Chinese soybeans closed mixed to firm, meal closed flat. Malaysian
Palm oil futures closed higher.

Monday May 14th is the Last Trading Day for all May-- CHICAGO GRAIN FUTURES
---all May Chicago Grain Markets close at 12:00 Noon, Monday, Chicago Time.

eCBOT Overnight

Contract            Last      Net Change       High      Low

ZSN7                748^0    0^4                   749^2    746^0

ZSQ7                754^2    0^2                   754^2    754^2

ZSU7                762^2    1^2                   762^2    762^2

ZSX7                 777^2    0^0                   778^2    775^4

ZMN7                202.0    0.1                    202.5    201.5

ZMQ7               204.6    0.0                    204.6    204.6

ZLK7                 32.84

ZLN7                 33.35    0.04                  33.46    33.29

ZLQ7                33.52

Early Opening Calls: steady; soymeal steady; soyoil steady to 10c higher

Top News

**FOMC keeps Fed Fund Target Rate Unchanged at 5.25%; FOMC votes unanimously
for leaving Fed Funds target rate unchanged.

**USDA May 10th Weekly Soybeans 06/07 Export Sales Net: 204k mmt, expected =
250-350k

**USDA May 10th Weekly Soy Oil 06/07 Export Sales Net: 6k mmt, expected =
Unch-25k

**USDA May 10th Weekly Soy Meal 06/07 Export Sales Net: 69k mmt, expected =
75-150k

-- Major news wire services average estimates for the USDA's May 06/07
Soybean ending stocks in a tight range from 606-607 mln bu. vs April's
supply/demand report 615 mln.  While the surveys for 07/08 ending stocks
also show tight estimated range of avg. analyst forecasts between 336-337
mln bu.

-- Egypt's GASC subsidiary seeks purchase tender May 15 for 10,000 T soyoil
& 10,000 T sunflower oil for LH June shipment, acc to cash traders

-- Dalian Soybean futures higher; soymeal mostly higher; soyoil higher

-- Malaysian Palm stronger overnight on news of lower stockpiles.

-- CBOT May Soybean Deliveries: 934

-- CBOT May Soyoil Deliveries: 24

-- CBOT May Soymeal Deliveries: 338

-- eCBOT Vol. 40,632; Pit Vol. 23,368; Open Interest Change: +1,325

-- Weather: Above Normal Temps. Normal to Above Precip. The Corn Belt will
see some scattered showers

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

Cash Markets

-- CIF Soybeans:  May Option to +3 , LH May +3 to +5, June +3 to +10, July
+12 to +16, Aug. +10 to +18,. Oct. +23 to +26

-- Processors: Decatur  -28   Danville -32   Bloomington -30  Gibson City
-30



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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