Linn Group Morning Soybean Comment

CHICAGO - Jun 18/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybeans ended Friday’s session up 19 ¾ cents in both the November and July
Contracts. Heavy fund buying right from the opening bell  drove beans 18
cents higher and the market remained firm throughout the session. Hot and
dry weather and concerns of crop stress were the driving force. A recovery
in the Asian palm oil market also was supportive. Stronger crude oil prices
and Indonesia’s decision to raise crude palm oil export taxes were
supportive traders said. Informa Economics on Friday issued its latest US
soy acreage estimate of 68.770 mil acres, above the US Governments Current
forecast of 67.1 mil acres.  Volume was heavy with an estimated 164,577
soybean futures traded, 56,577 bean oil traded and an estimated 48,025 Meal
futures traded. Funds were active buyers on Friday buying an estimated 9,000
soybean contracts, 3,000 Meal and 4,000 oil.

Today’s focus remains weather and the lack of rain for the majority of the
corn belt. The 6 to 10 day forecast calls for above to much above
temperatures and below normal precipitation. Traders say today’s USDA weekly
crop progress report will likely show a drop in soybean conditions of
approximately 2% to 4% from last weeks ratings of 70% good to excellent
rating. The commitment of traders report from Friday shows funds long
129,825 down 5,340, Meal long 40,677 up 5,403 and oil long 77,850 down
4,797. The supplemental report shows index funds long 141,971 down 1,664
soybeans. Overnight Chinese Soybean and meal futures closed higher.
Malaysian Palm oil futures closed up 2.2% on Indonesia’s decision to raise
export taxes on Palm oil and its products.

Early Opening Calls: 10 to 12c higher; soymeal $4 higher; soyoil 70-75c
higher

Top News

-- USDA Crop Progress Reports this afternoon.  Some analyst expect a slight
drop in corn & soybean conditions.

-- COPA:  Canadian Soybean Crush pegged at 29,632 tons this week, an
increase of nearly +50% from last week

-- COPA:  Canadian Canola Crush pegged at 60,483 tons this week, an increase
of +36.3% from last week

-- Informa Recap:  Corn acreage increased very slightly (+0.14%), Soybeans
increased +3.7%, spring wheat decreased very slightly (-0.3%)

-- Dalian Soybean futures higher; soymeal higher & soyoil sharply higher in
active contracts.

-- Funds continue their buying ways Friday buying 9,000 Soybeans, 7,000
Corn, 2,500 Meal, 3,000 Oil.   Even  Wheat.

-- eCBOT Vol. 107,032; Pit Vol. 56,960; Open Interest Change: +11,428

-- Weather Weekend rains were less than expected helping support Corn and
Soybeans overnight.

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

Cash Markets

--CIF Soybeans: June +2 to +7, July +3 to +9, Aug. +3 to +10, Oct. +5 to
+15, Nov. +12 to +24, 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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