Linn Group Morning Soybean Comment

CHICAGO - May 15/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

July Soybeans ended Mondays session up 8 ¾ cents. Adding to a gain of 15 ¼
cents on Friday for a gain of 24 cents over the last 2 sessions. Strength in
bean oil has clearly been the leader as vegoil prices worldwide are surging
higher. Monday Malaysian palm oil futures reached new 8 year highs driven by
demand both in Chinese and Indian business as well as some cut in
production. Technical buying ignited the soybean meal market traders say,
further supporting the bean complex. The NOPA crush numbers indicated that
soyoil use will rise in the coming year due to increased demand by the
biodiesel industry adding further support to Fridays USDA bullish ending
stocks numbers. Volume was moderate in soybeans with an estimated 89,458
soybean futures, 41,572 meal futures and 39146 oil futures traded. Funds
bought an estimated 7,000 soybean futures, 2,000 meal and 1,000 oil.

Todays focus turns to the release of the USDA crop progress report released
Monday afternoon after the close showing corn planting at 78% complete vs.
83% last year and a 78% average. Soybean planting at 32% planted vs. 31%
last year and a 31% average. So we are above average on soybean plantings
but more importantly corn plantings have caught up to the 5 year average
within the critical time period prior to May 15th. Overnight markets are
lower based upon the release of the good crop progress numbers now the focus
turns to how much downside will occur because of these numbers. The 6 to 10
day forecast calls for above normal temperatures and normal to above normal
precipitation. Overnight Chinese soybean futures closed lower and  meal
lower. Malaysian Palm oil futures closed lower.

eCBOT Overnight

Contract            Last      Net Change       High      Low

ZSN7                766^0    -4^4                  768^6    765^4

ZSQ7                775^4    -1^2                  775^4    770^6

ZSU7                782^6    -1^4                  782^6    781^6

ZSX7                 795^0    -4^4                  797^6    795^0

ZSF8                804^6    -3^2                  806^2    804^6

ZMN7                205.3    -1.2                   206.0    205.1

ZMQ7               208.0    -0.7                   208.5    208.0

ZMU7                210.0    -0.8                   210.0    210.0

ZLN7                 34.22    -0.27                 34.48    34.22

ZLQ7                34.59    -0.15                 34.62    34.51

ZLU7                 34.90    -0.08                 34.90    34.90

Early Opening Calls: 2 to 4c lower; soymeal $1.00to $ 2.00 lower; soyoil 20c
to .25c lower

Top News

Spring Wheat Progress & Conditions Mini-Recap

Spring Wheat % Planted:  87%; 68% week ago; 76% yr ago week; 74% 5 yr avg.

Spring Wheat % Emerged:  51%; 21% week ago; 42% yr ago week; 43% 5 yr avg.

Spring Wheat Conditions Latest: VP= 0; P= 1; F= 20; G= 70; EX= 9

Spring Wheat Conditions Prior Wk: VP= NA; P= NA; F= NA; G= NA; EX= NA

Spring Wheat Conditions Yr Ago Wk: VP= NA; P= NA; F= NA; G= NA; EX= NA

Winter Wheat Progress & Conditions Mini-Recap

Winter Wheat % Headed:  51%; 35% week ago; 62% yr ago week; 57% 5 yr avg.

Winter Wheat Conditions Latest: VP= 6; P= 11; F= 25; G= 40; EX= 18

Winter Wheat Conditions Prior Wk: VP= 7; P= 11; F= 25; G= 40; EX= 17

Winter Wheat Conditions Yr Ago Wk: VP= 19; P= 19; F= 26; G= 30; EX= 6

-- Ag Sec of Argentina reported 12.99 mln mt of grain products exported in
1Q 2007. Soymeal exports = 5.38 mln mt, Soybean exports = 360,000 mt while
soyoil exports = 1.12 mln mt

-- Celeres:  Brazil producers have now sold an estimated 62% of their new
crop soybeans

-- Celeres:  Brazil Soybean Harvesting Progress reaches 97%

-- Chinese officials say 2 grain growing provinces experiencing drought,
Henan & Hebei are only 70% of their normal rainfall, Chinese state new
agency reports

-- Chinese soybean imports were 2.65 mln mt in April 07, up from March 07
imports of 2.11 mln mt, also a rise of 3% vs April year ago

-- Dalian Soybean futures lower overnight in active Sep contract.  Soymeal &
soyoil contracts also lower.

-- India April edible oil imports totaled 306,245 T vs March imports of
317,930 T, oilseed group data shows.

-- Malaysian Palm oil futures end overnight lower on profit taking.

-- Funds aggressive after Soybeans Monday buying 7,000 contracts, 2,000 Meal
contracts, 1,000 Oil contracts.

-- eCBOT Vol. 56,997; Pit Vol. 29,850; Open Interest Change: +5,272

-- Weather Normal to Above Temps. Normal to Above Precip.

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

Cash Markets

-- CIF Soybeans:  May +1 to +8 , LH May +2 to +9, June +4 to +10, July +12
to +20, Aug. +10 to +18,. Oct. +22 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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