Linn Group Morning Soybean Comment

CHICAGO - Jun 6/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

July Soybeans went to new Contract highs and a new contract high close in
July Soybeans on Tuesday ending the days session up 12 ½ cents. World vegoil
markets led the bean rally with palm oil prices up 4% Monday night to set
the tone for Tuesdays trade. The CBOT soybean oil market followed suit
trading to new contract highs along with Meal. Volume was large with soybean
trade estimated at 148,248  futures, oil volume was 61,454 futures and meal
volume was estimated at 59,931futures. Funds were active buyers buying an
estimated 6,000 soybeans , 2,000 meal and 2,000 Oil.

Overnight July soybeans once again made new contract highs ending the
evening session up 3 ¼ cents. Meal is also higher overnight up $3.20 and oil
is down 32 which some traders say could indicate a reverse of the oil share
trade. Early opening calls are higher for soybeans as traders say the idea
that low U.S. soy acreage this year, a projected sharp drop in soy stocks
next year and volatile vegetable oil markets should continue to support
soybean futures. Overnight profit taking in Palm oil trading occurred
overnight traders say. Palm Oil traded 2% higher at one point overnight and
ended the night session 3% lower. Chinese soybean futures closed higher,
meal mixed.

Top News

-- S Korea state run ag company official says they re-tender for 100,000 mt
of Non-GMO soybeans for delivery between Jan 08 & July 08, offers due June
12

-- Brazil crusher group raises June estimate of Brazil soybean crop to 59.3
mln mt up 0.4 mln mt from prior month estimate and vs Brazil's Conab
estimate of 58 mln mt

-- Brazil's gov't June estimate of 06/07 soybean output at 58.0 mln mt up
0.45 mln mt from May's estimate

-- The USDA reported two new case of Soybean Rust in Louisiana.      -- Top
fuel, farming, & policy makers will launch another study on the future of
ethanol production in the US; suggest cellulose feedstocks likely to
overtake corn; the Hale Group will manage the study, no date was set for the
release of the final study.

-- More Brazilian ethanol investment on George Soros radar, tells ethanol
conference that he plans more investment in that industry

-- Brazil ethanol conference goers told by ADM executive it's still looking
for the 'right' investment opportunity in Brazil, acc. to

-- US Treasury Secretary Paulson:  China needs to do more on yuan currency
reform;  dialogue a long term process

-- Dalian Soybean futures higher overnight on almost double the volume from
Tuesday in the Jan contract; soymeal & soyoil futures higher overnight.

-- USDA Malaysian attache reports crude palm oil production 4% to 1.12 MMT
in April 2007 from March, but was down 14% from April 2006

-- Goldman rolls starts Thursday.

-- eCBOT Vol. 90,801; Pit Vol. 53,733; Open Interest Change: +9,570

-- Weather: Normal to Above Temps East, Normal to Below West. Normal to
Above Precip.

-- Outside markets. Energy complex mostly lower; Gold & Silver: both lower;
US $ mixed vs Euro, lower vs Yen

Cash Markets

--CIF Soybeans: June -6 to Option, July Option to +5, Aug. Option to +10,
Oct. +10 to +14, Nov. +20 to +26, 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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