Linn Group Morning Soybean Comment

CHICAGO - Jul 5/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybeans took a respite from their recent price surge on Tuesday closing 15
¼ cents lower. Traders say profit taking caused the setback after climbing
approximately 60 cents in the previous 2 trading sessions. Traders say
overall the market is still bullish especially with the acreage numbers from
Fridays report. Tuesdays session opened a little weaker than expected and
continued to sell off through the day into the close. Volume was moderate to
heavy with an estimated 128,713 soybean futures traded,  51,848 oil futures
traded and 53,717 meal traded. Funds sold an estimated 6,000 soybeans, 1,500
oil and 500 meal.

Overnight November soybeans traded 11 ¾ cents higher. Traders say the market
was oversold on Tuesday and last nights rally was a reaction to that
oversold condition. Traders caution that with soybeans and the products near
record all time fund length that risk levels are higher and to expect
volatility to remain high.  Without a lot of new news in the marketplace the
focus will remain on weather and the 6 to 10 day forecast calls for normal
temperatures and normal precipitation for the corn belt with a potential for
showers south, Friday into Sunday. Soybean basis firmed in the export market
but not so in the domestic trade. South American soybean basis continues to
remain weak losing another 5 cents on Tuesday. Overnight Chinese soybeans
and oil closed higher, meal unchanged. Malaysian Palm oil futures closed
slightly higher.

Opening call: 10 to 12 cents higher soybeans, oil .20 to .30 higher and meal
$3.00 to $ 4.00 higher.

Top News

**USDA Export Sales report will be released on Friday, July 6, 2007, because
of the 4th of July holiday.

-- Soybean Deliveries: 2,975; Term stopped 37

-- Soyoil Deliveries: 871

-- Soymeal Deliveries: 13

-- Dalian Soybean futures higher active Jan. was +16 yuan/T higher; soymeal
unchanged; soyoil higher.

-- Malaysian Palm oil futures closed slightly higher. Malaysia palm board
members suggest near term demand to quicken by prepurchasing countries that
observe Ramadan.

-- eCBOT Vol. 72,657; Pit Vol. 52,656; Open Interest Change: -3,357

-- Weather: Normal Temps.   Normal Precip. The Corn Belt will see some
showers and thunderstorms in south eastern sections today.

-- Outside markets. Energy complex higher, NY crude hits 72.08 intraday high
highest since Aug 2008; Gold & Silver both higher; US $ lower vs Euro, mixed
vs Yen.

Cash Markets

--CIF Soybeans:  FH July Opt. to +3, July Opt to +4,  Aug. Opt to +8, Sept.
-8 to +8, Oct. +2 to +12, 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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