Linn Group Morning Soybean Comment

CHICAGO - Jun 4/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

July soybeans opened better than expected on Friday and closed 11 ¼ cents
higher. Traders say a steady flow of buying throughout the session took July
soybeans to their highest weekly contract close. Meal was the product leader
on Friday. Traders say strength in meal came amid worries about a possible
disruption in crushing at Bunge’s plant in Danville, Ill, which is in the
midst of contract negotiations with its union. Other supportive factors for
the soybean complex include a strengthening Brailian real and worries about
too much rain in the western corn belt and dryness in the US delta.  For the
week July soybeans gained only 5 cents but maintained their stronger bias.
Volume was heavy with an estimated 125,926 soybeans traded, 50,262 meal and
52,414 oil The CBOT reported an all time record for monthly total volume in
May. Funds on Friday bought an estimated 5,000 soybeans, 7,000 Meal and
3,000 Oil.

Today traders say they expect a setback after Fridays rally and some
potential profit taking at least initially. The Weekly commitment of traders
report issued Friday shows funds long 116,548 soybeans up 3,382, long 25,356
meal up 4705 and long 78,161 oil up 202. The supplemental report shows index
funds long 141,651 soybeans up 462. Traders say they are expecting USDA late
on Monday to show U.S. soy conditions from 67 to 70 percent good to
excellent. USDA's crop progress report will be released late on Monday.
Technicians indicate support for July soybeans to be $8.00 with retracement
targets near $ 8.50. Overnight Chinese soybean, and meal futures closed
higher. Malaysian Palm oil futures closed slightly higher.

Top News

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

-- Malaysian Palm futures were slightly higher on what was deemed thin
volume.

-- eCBOT Vol. 81,078; Pit Vol. 45,220; Open Interest Change: +10,755

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

-- Outside markets. Energy: crude lower, products mixed; US $ lower vs Euro
& Yen; Gold & Silver lower

Cash Markets

--CIF Soybeans: June +4 to +7, July +7 to +11, Aug. +2 to +10,  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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