Linn Group Morning Soybean Comment

CHICAGO - Jun 5/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

July Soybeans ended Mondays session down 1 ¾ cent after trading in a 10 cent
range. After Making new contract highs mid day some liquidation occurred
traders say. The lows of 813 ¼ for July were hit in the first hour of
trading and the market rallied into mid-session only to sell off from the
highs into the close. However technicians say they consider this pattern
very bullish as the overnight session showed gaining 13 ¼ cents to make new
contract highs.  Volume on Monday was relatively heavy with an estimated
100,480 soybean futures traded, 45,227 meal and 31,662 Oil traded. Funds
were quiet Monday having sold an estimated 1,000 soybeans, 1,000 oil and
even in meal.

Today the market focuses on another price surge in Malaysian Palm oil.
Malaysian Palm futures climbed almost 4% on Tuesday to hit a new high,
ignited by expectations that Indonesia will raise cooking oil export tax and
by the prospect of India cutting import duty. Palm oil prices which have
almost doubled since January 2006 also lifted veg oil markets across the
globe. Chinese soybean oil prices are at historic highs and Indian soyoil
market is up 1.22%. As a result July CBOT bean oil is up 46 pts. overnight.
After yesterdays close the USDA released the weekly crop progress report
showing soybean ratings 71% good to excellent vs. 70% last year and a 64%
average. The Soybean condition is the highest raging in recent history for
this date. Expectations were for this report to show us soybean conditions
to rate from 67% to 70% good to excellent. Planting was up 8% to 88%
complete. Overnight Chinese soybeans, meal and oil all closed higher
overnight.

Opening calls: Soybeans called 10 to 15 cents higher, Oil .30 to .50 higher
and $2.00 to $3.00 higher.

Soybean Progress & Conditions Mini-Recap

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Soybeans % Planted:  88%; 80% week ago; 88% yr ago week; 81% 5 yr avg.

Soybeans % Emerged:  70%; 48% week ago; 66% yr ago week; 56% 5 yr avg.

Soybean Crop Conditions Latest: VP= 1; P= 4; F= 24; G= 59; EX= 12

Soybean Crop Conditions Prior Wk: VP= NA; P= NA; F= NA; G= NA; EX= NA

Soybean Crop Conditions Yr Ago Wk: VP= 1; P= 4; F= 25; G= 58; EX= 12

-- USDA 06/07 Soybean Inspections: 5.426 mil bu, expected = 7.0-11.0,
previous = 4.50 mln bu.

-- China proposes soybean import purchases be reported within 72 hours of
contracts being signed as a move to offer more market transparency, but did
not give a time frame for implementing such a ruling.

-- Danville, IL union workers at Bunge oilseed crushing plant approve new 3
yr contract

-- Goldman roll starts Thursday.

-- Barge freight was steady on Monday

-- BN rail freight steady

-- Petrobras President says US tarrif on imports restricts the growth of
ethanol production in Latin America at a meeting of executives.

-- Dalian Soybean futures front months settled lower, back months slightly
higher; soymeal mixed; soyoil higher

-- Malaysian Palm again set new high on expectations that the Indonesian
gov't may set higher export taxes, while others feel India may lower palm
oil import duties.

-- eCBOT Vol. 62,946; Pit Vol. 34,444; Open Interest Change: +3,866

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

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

Cash Markets

--CIF Soybeans: June +4 to +6, July +7 to +11, Aug. +2 to +10,  Oct. +10 to
+15, Nov. +20 to +30, Jan. +30 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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