Linn Group Morning Soybean Comment

CHICAGO - May 14/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

July Soybeans closed 15 ¼ cents higher on Friday after the USDA cut their
carryout numbers almost in half. While traders were expecting a reduction in
the ending stocks the release of the numbers rallied soybean prices and
corn. Funds were aggressive buyers of soybeans on Friday buying 11,000
soybeans, 3,000 meal and 5,000 oil. Volume was heavy on Friday with an
estimated 111,531 soybean futures traded, 35,157 meal futures and 37,680 oil
traded.

Today the NOPA crush was released and shows. Apr 07 crushings: 138.72 mln.
bu. apr 07 down 9 from March but up 8 from last year. soymeal exports
451,801 T   vs. Mar 483,046 T apr 07 soyoil stocks 2.902 bln lbs. vs. Mar
2.933 bln. lbs. Fridays commitment of traders report shows funds long 60,172
soybean futures including options down 3,081. The supplemental report
showing index funds shows index funds long 137,846 futures up 302. The focus
today turns to the planting progress report released this afternoon. Traders
expect the report to show corn plantings 65 to 75% complete vs 77% average
and soybean plantings are expected to be 35% to 40% complete vs. 35% average
and 33% last year.  Palm oil market remains red hot up 2.8% to new 8 year
highs. Overnight July Soybean Oil is into new highs up 39. Traders say with
Palm oil prices surging and higher crude oil prices they expect the overall
trend to continue.  Overnight Chinese Soybean futures and meal closed
higher.

Apr 07 crushings: 138.72 mln bu. apr 07 soymeal exports 451,801 T   vs Mar
483,046 T apr 07 soyoil stocks 2.902 bln lbs  is new headline vs Mar 2.933
bln lbs

eCBOT Overnight

Contract            Last      Net Change       High      Low

ZSN7                767^4    5^6                   768^0    759^6

ZSQ7                774^4    6^2                   775^0    767^0

ZSU7                781^6    5^6                   782^0    774^4

ZSX7                 796^6    6^0                   796^6    789^0

ZMN7                203.8    2.0                    204.3    201.8

ZMQ7               206.1    1.5                    206.2    204.8

ZLN7                 34.78    0.39                  34.78    34.37

ZLQ7                34.85    0.27                  34.85    34.85

Early Opening Calls: 4 to 6c higher; meal $1 higher; soyoil 25-40c higher

Top News

-- Analyst expect plantings of soybean to be near 5 yr avg of 35%.  Year ago
plantings in same week were 33%.

-- Funds turned aggressive buyers of Soybeans Friday buying 11,000 Soybeans,
3,000 Meal, 5,000 Oil.

-- India ‘s Farm Minister told reporters at a farm research meeting that
India may import 4 to 5mmt. of Wheat this year to build stocks for
emergencies.

-- Dalian Soybean futures rose overnight, soymeal & soyoil futures were
sharply higher also taking cue from Friday's CBOT action.

-- Malaysian Palm crude oil futures higher to new 8 yr highs.

-- eCBOT Vol. 65,052; Pit Vol. 45,352; Open Interest Change: +13,434

-- Weather Normal to Above Temps. Normal to Below Precip.-- Outside markets.
Energy complex higher; US $ lower vs Euro, higher vs Yen; Gold higher &
Silver lower

Cash Markets

-- CIF Soybeans:  May +3 to +8 , LH May +6 to +9, June +7 to +10, July +13
to +20, Aug. +10 to +18,. Oct. +23 to +27

-- 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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