Linn Group Morning Soybean Comment

CHICAGO - Jun 1/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

July soybeans ended down 2 cents on Thursday after a nickel higher open and
traded as much as eight higher in early, active trade. After making the
highs, values proceeded to break 11 cents in the next fifteen minutes. The
last hour of trade the prices broke down again, trading as much as 9 lower
late before rallying into the close. Volume was good with an estimated
123,035 soybeans, 41,267 meal and 42,049 oil futures traded. Funds bought an
estimated 3,000 soybean futures, 3,000 soybean oil and 2,000 Meal.

Today the USDA released the weekly export sales figures Net sales of 345,300
MT were nearly four and one-fifth times the previous week and three and
one-tenth times the prior 4-week average.  The major buyers were Mexico
(127,700 MT), Indonesia (69,900 MT), and China (68,300 MT). This was below
analysts expectations of 500,000 to 800,000 mt. Rumors surfacing out of
China saying that with Soyoil  prices making new record highs in China the
government is considering releasing 700,000 mt. of Soyoil reserves into the
domestic market. 6-10 Day Forecast:  Normal to Below Temps. Normal to Above
Precip. The Corn Belt will see scattered showers and thunderstorms today
into Monday. Dry weather moves back in Tuesday. Temps normal to above.

Overnight Chinese Soybeans closed mixed, meal lower. Malaysian Palm oil
futures closed lower on profit taking traders say,

Early Opening Calls: 1 to 2c lower; soymeal mixed; soyoil steady

Top News

**USDA June 1st Weekly Export Sales, Soybeans:  345k tons in 06/07, 347k
tons in 07/08, expected = 500k-1.1 mil

**USDA June 1st Weekly Export Sales, Meal:  83,600 tons in 06/07, 87,400
tons in 07/08, expected = 50k-125k

**USDA June 1st Weekly Export Sales, Bean Oil:  7,600 tons in 06/07, 7,600
tons in 07/08, expected = 0-10k

**USDA June 1st Weekly Export Sales, Bean OIl:  7,600 tons in 06/07, 7,600
tons in 07/08, expected = 0-10k

**US May Non Farm Payrolls:  +157k; expected +130k

**US May Unemployment Rate: 4.5%; expected 4.5%

-- EIA data shows Ethanol production in March averaged 384,000 bbls down
2,000 bbls from February.

-- Brazil's Ag minister seeks govt approval to increase ethanol blending to
25% up 2 percentage points from current blending regulations

-- Brazil's CONAB pegs 2007/08 ethanol production at 20 bln liters

-- Brazil's CONAB pegs 2007/08 ethanol exports at 3.9 bln liters up 0.5 bln
liters from 2006/07

-- BP Australia reached a milestone when it hit 100 million litres of
ethanol-blended fuel supplied in Queensland.

-- US trade officials:  Doha Trade Talks progressing nicely. Despite gains,
no consensus yet reached on agriculture between US and European negotiators;
calls to move more quickly heard.

-- Barge freight rates higher Thursday

-- China the government is considering releasing 700,000 mt. of Soyoil
reserves into the domestic market to curb high prices.

-- Palm oil exports out of Malaysia during May were +3.4% vs prior month May
exports totaled 1.18 mln mt, acc. to Intertek

-- Malaysian Palm oil exports were 4.7% higher at 1.184 mln mt in May acc.
to SGS.

-- Dalian Soybean futures mixed at Friday's settlement; lower settlements
for soymeal & soyoil

-- Malaysian Palm follows eCBOT overnight soyoil futures slightly lower,
traders there say profits were locked in after a week of gains.

-- eCBOT Vol. 79,356; Pit Vol. 43,965; Open Interest Change: +3,685

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

-- Outside markets. Energy complex higher; US $ higher; Gold & Silver: both
higher

Cash Markets

--CIF Soybeans:   June +Option to +5, July +4 to +9, Aug. Option to +11,
Oct. +10 to +15, Nov. +20 to +30, Jan. +25 to +35



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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