Linn Group Morning Soybean Comment

CHICAGO - Jun 14/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybeans struggled on to rally on Wednesday in spite of a surge in wheat
prices. Wheat up 24 ½ cents after spending much of the session at limit up
while soybeans ended the day down ¾ cent. Corn gained strength from the
wheat rally but beans were being pressured by a large sell-off in Malaysian
palm oil overnight. Concerns about China possibly raising interest rates and
a rise in Palm Oil margins are pressuring the Palm oil market after surging
to 8 year highs. The strongest of the complex was soybean meal as July Meal
closed .80 higher. Volume was heavy with an estimated 149,658 soybean
futures traded, 70,464 soybean oil futures traded and 42,005 soybean meal
futures traded. Funds sold an estimated 1,000 soybeans, 2,500 oil and even
in meal.

Weekly export sales released this morning show soybean sales of 351,600 mt.
two and one-half times the previous week's marketing-year low and 51 percent
over the prior 4-week average. Analysts were looking for sales of 150,000 to
250,000 mt Meal sales were 78,300 mt of U.S. soymeal (old and new crop) sold
for export last week, within the range of estimates for 50,000 to 125,000
mt. The NOPA crush was released today at 143.35 mil. bu.  which was in line
with analysts estimates of 144 mil bu. Traders say the soy complex is mostly
a follower at this point, getting its cue from palm oil. Overnight Malaysian
palm oil was slightly higher and bean oil closed in line with that up 15.
Beans ended the evening session higher, July soybeans gained 5 ¼ cents
overnight. Weather remains a concern as traders continue to talk about dry
weather in the eastern Midwest crop region. Updated forecasts call for
normal temperatures and normal precipitation for most of the corn belt.

Early Opening Calls: Soybeans 4 to 5c higher, Meal $1.00 to $2.00 higher and
oil .10 to .15 higher.

Top News

**USDA Soybeans 06/07 Export Sales Net: 221,700 mt; expected 150-200,000

**USDA Soybean Meal 06/07 Export Sales Net: 68,700 mt; expected 50-150,000

**USDA Soybean Oil 06/07 Export Sales Net: 21,300 mt; expected Unch-10,000

**NOPA May Soybean Crushings: 143.35 mln bu vs Apr 138.72 mln bu

**NOPA May Soybean Exports: 400,474 mln T  vs Apr 451,801

-- High palm prices causes expansion plans in Singapore to be suspended and
contemplation to halt production by biodiesel producers according to a
Malaysian biodiesel producer.

-- Sunoil exports from Russia dropped to 73,100 tons,a -17.7%  fall in April
from March, and -22.2% from the same time last year.

-- Poland's rapeseed crop could hit a record 2 million tons for 2007 with
grain totaling around 27.5 million tons, according to the Grain Chamber.

-- Private South Korean firm announces the purchase of 100k tons of soybeans
from China for delivery in 2008, acc. to a company source

-- China's retail sales for grain and edible oil up 35% and meat,eggs, &
poultry are up 38.8% since May of last year according to the country's
National Bureau of Statistics.

-- Dalian Soybean futures higher; soymeal mostly higher; soyoil higher
overnight.

-- Funds Sold 1,000 Soybeans, 2,500 Oil.  Even Meal.

-- eCBOT Vol. 97,400; Pit Vol. 53,206; Open Interest Change: -283

-- Weather: Normal Temps. Normal Precip. The western Corn Belt will see
showers and thunderstorms today and Friday

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

Cash Markets

--CIF Soybeans:   June -3 to +3, July -3 to +5, Aug. -2 to +8,  Oct. Opt. to
+15, Nov. +10 to +20, Jan. +22 to +30



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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