Linn Group Morning Soybean Comment

CHICAGO - Jul 3/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybeans gained 16 cents on Monday on follow through buying form Friday.
Fridays surprising reduction in planted acreage by the USDA has rallied
November soybeans 55 ½ cents since the close Thursday. Beans opened 12 cents
higher on Monday and into new contract highs and strengthened into the
close. Meal led the products settling $6.70 higher in the December contract.
Volume was extremely heavy in the soy complex again on Monday with an
estimated 200,304 soybean futures traded, 72,409 oil and 63,132 meal futures
traded. Fridays volume in soybeans was an all time high with 232,288 futures
traded. Funds trade on Monday was a little more moderate but funds were
again on the buy side buying an estimated 3,000 soybeans, 3,500 meal and
1,500 oil.

Today’s market is expected to open a little lower after the release
yesterday of the weekly crop progress numbers. The USDA said the weekly crop
conditions were up 2% to 68% good to excellent vs. 66% last week, 64% last
year and 60% average. The biggest improvements came in Ill, Ind, Ky and Ark
and the crop appears to be running slightly ahead of normal with 19% of the
crop setting pods compared to 17% last year and 13% normal Soybean
deliveries at the CBOT were relatively heavy with 2532 through 7/2/2007 ADM
stopped 42, oil deliveries 1,049 with term stopping 9 and meal 11 with no
stopper. Overnight Chinese soybean futures closed higher overnight, meal
lower and oil mixed. Malaysian Palm oil futures closed higher

Early Opening Calls: beans 2 to 4 cents lower, meal .50 lower and oil .10 to
.15 higher.

Top News

Soybean Progress & Conditions Mini-Recap

Soybeans % Blooming:  19%; 6% week ago; 17% yr ago week; 13% 5 yr avg.

Soybean Crop Conditions Latest: VP= 2; P= 6; F= 24; G= 53; EX= 15

Soybean Crop Conditions Prior Wk: VP= 2; P= 6; F= 26; G= 53; EX= 13

Soybean Crop Conditions Yr Ago Wk: VP= 2; P= 7; F= 27; G= 51; EX= 13

-- Brazil's Gov't reports June soybean exports lower to 3.0 mln mt from
prior month , but

higher than the 2.3 mln seen June 2006

-- Brazil's Gov't reports monthly soymeal exports dow to 1.2 mln mt in June
from prior month

-- Brazil's Gov't reports monthly soyoil exports down to 169,500 mt in June
from prior month

-- Israel tenders for 56k tons of North/South American corn along with
potentially 8k tons of soybean meal, acc. to traders

-- USDA Soybean Inspections: 7.176 mln bu.; expected 12.5 mln

-- Britain's farmer union calls on EC to discontinue crop set aside rules
for the 2008 crop year by Sept giving farmers time to adjust their upcoming
plantings.  Union claims all ag industry producers & users hope the EC
follows their suggestion of abolishing set aside rules in light of this
years drought hit crop.

-- Chinese stats bureau chief economist suggests country's 2nd half 2007
surplus in trade growth will fall as a result of scraped or reduced tax
rebates local exporters had been receiving

-- Dalian Soybean futures higher overnight; soymeal mostly lower, while
soybean oil was mixed.

-- Malaysian Palm crude oil slightly lower.

-- Fund trade moderate Monday. Funds bought 3,000 Soybeans, 3,500 Meal,
1,500 Oil.-- eCBOT Vol. 111,132; Pit Vol. 86,436; Open Interest Change:
+5,488

-- Weather: Normal Temps.  Normal Precip. The Northern areas of the Corn
belt will see chances of scattered showers and thunderstorms today.

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

Cash Markets

--CIF Soybeans:  FH July Opt. to +3, July ?? to +9,  Aug. Opt to +10, Sept.
-8 to +8, Oct. +3 to +14, Nov. +15 to +25, Jan. +25 to +34



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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