Linn Group Morning Soybean Comment

CHICAGO - Jun 15/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybeans ended Thursdays session up 4 ½ cents on the heels of a runaway bull
market in Wheat. By comparison July soybeans for the week have gained 6
cents while July wheat has gained 79 cents and July corn 27 cents. Some
traders say that with this weeks action in soybeans that this could be the
calm before the storm as dry conditions could become an issue if they
persist. Open interest is starting to shift in beans from July to November
as front month is now considered November. Volume on Thursday was heavy with
an estimated 141,579 soybean futures traded 51,956 oil futures traded and
35,488 meal futures traded. Funds bought an estimated 4,000 soybeans, 3,000
oil and even in meal.

Today’s focus will center around weather again traders say. Concerns about
dry weather in the eastern Midwest stressing young soybean plants and
slowing emergence have been responsible for rallying prices. Today’s call
are for higher prices led higher by expected gains in soyoil. Soyoil and
palm oil futures found spillover support from Thursday's strong close in
crude oil. Crude oil this morning is trading 28 cents higher and should lend
support. Sellers of palm and lauric oils withdrew from the European
vegetable oils market on Friday after Indonesia raised its export tax.
Overnight Chinese soybean futures closed mixed, meal lower, oil higher.

Early Opening Calls: 4 to 5c higher; soymeal 50 to 70c higher; soyoil 30 -
40c higher.

Top News

-- Drought could cost Ukraine as much as 10 million tons, 26.3% of their
estimated 38 million ton grain harvest this year,  the country's Prime
Minister said.

-- US Department of Agriculture's Gale Buchanan, is in Brazil discussing
ehtanol research cooperation focusing on cellulosic ethanol, between the two
countries.

-- Dalian Soybean futures settled mixed. Soymeal settled mostly lower,
soyoil had good gains overnight.

-- Malaysian Palm futures followed overnight energy complex, Chinese & eCBOT
soyoil futures higher, rising 1.7%

-- Funds aggressive Thursday buying 4,000 Soybeans, 3,000 Oil.-- eCBOT Vol.
89,601; Pit Vol. 48,383; Open Interest Change: +977

-- Weather: Normal to Above Temps. Normal Precip. The Corn Belt will be
mostly dry with only a few scattered showers in the west today.

-- Outside markets. Energy complex crude lower; gasoline mixed; Gold &
Silver higher; US $ lower vs Euro, higher vs Yen

Cash Markets

--CIF Soybeans:   June +1 to +8, July +5 to +10, Aug. Opt. to +10,  Oct. +5
to +15, Nov. +16 to +25, 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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