Soybeans ended Tuesdays session on the defensive down 9 cents breaking down late in the session. Traders say the market broke down late in the day on rumors that the Argentine farmer strike negotiations were going well. Uncertainty whether farmers will resume their strike has been keeping the market volatile traders say. Meal followed the moves in Beans but Soy Oil rallied with Crude oil which made new all time highs yesterday. Volume on Tuesday continues to be on the lower end of the range. Soybeans traded 105,455, Meal 46, 224 and Oil 54,669. Funds Bought 3,000 Oil and Sold 1,000 Beans and 1,000 Meal.

Early Opening call higher. The Argentine Government will meet with Farm groups again today. Argentine traders are optimistic that an agreement will be reached after the Chief of the Cabinet said there were certain problems with the sliding soybean export tax. Brazilian grain analyst Celeres estimates Brazil Soybean harvest is 93% complete. 6 to 10 day forecast calls for below normal temperatures and normal to above normal precipitation. Opening call: Soybeans 8 to 10 cents higher. Meal $2.00 to $3.00 higher. Oil .10 to .20 higher. Overnight Chinese Soybeans and meal closed higher, Oil Lower. Malaysian palm oil closed lower.

Cash Markets

-- CIF Soybeans off 2 to 7. May +10 to +15, June +28 to +33, July +30 to +40, Sept. +16 to +25, Oct. +16 to +20, Nov. +20 to +25

Nate Smith Linn Group nsmith@linngroup.com toll free: (877) 787-6278 local: (312) 896-2090 fax: (312) 896-2052

Reproduction or rebroadcast of any portion of this information is strictly prohibited without the written permission of the Linn group, inc. the information reflected herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Opinions expressed are subject to change without notice. this material and any view expressed herein are provided for informational purposes only and should not be construed in any way as an inducement to buy or sell commodity futures or options contracts. The Linn group and its officers, directors, employees and affiliates may take positions for their own accounts in contracts referred to herein. Trading futures involves risk of loss