Linn Group Morning Soybean Comment

CHICAGO - Jul 9/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybeans posted a higher close on Friday settling 9 ½ cents higher in the
November contract. For the week November soybeans gained 14 ¼ cents from the
previous week. Volume on Friday was the lightest of the week with estimated
volume at 98,097 futures, oil volume was estimated at 38,529 and meal volume
was estimated at 28,425 futures. Traders say the market is still maintaining
the bullish momentum from the release of the July Acreage numbers and the
recent spell of hot weather. Friday Analyst Informa Economics issued its
forecast of the US soybean crop at 2.719 bil bu. based on a yield of 43 bpa.
this compares with the USDA’s June 11th forecast of 2.745 bil. bu and a
yield of 41.5 bpa. Also released on Friday was the weekly export sales data
which traders say was mildly supportive for soybeans as the combined old and
new crop sales of 328,500 were above expectations for 125,000 to 275,000.
Funds on Friday bought an estimated 3,000 soybean futures, 1,000 Meal and
2,000 Oil.

Today soybeans take their cue from the overnight market trading lower and
ending the evening session down 5 ¾ cents. Forecasts for cooler and wetter
weather in the US Midwest this week is expected to lend pressure to the
market. Traders say price declines should be limited due to the low planted
acreage. The CFTC delayed the release of the commitment of traders report
which is usually released on Friday but was delayed due to the July 4th.
holiday. The Commitment of traders report will be released today. Below are
cumulative estimates. Overnight Taiwan sugar corp. announced a tender to buy
up to 16,000 mt of US soybeans. Talk today of China to be delaying shipments
of beans due to poor crush margins and weakening meal prices. Deliveries in
the July contract were heavy again with 3,046 lots delivered and a few
scattered stops. Overnight Chinese Soybeans and meal lower, oil higher.
Malaysian Palm oil futures settled lower.

Early Opening Calls: 3 to 5c lower; soymeal $1 to $3 lower; soyoil 10 to 15c
lower.

Top News

-- Int'l Energy Agency sees 1.75 mln bpd global biofuel production by 2012
twice that of the 2006 level, but sees potential global capacity at 2.92 mln
bpd, despite growing biofuel use, it deems it as marginal compared to
petroleum

-- Dalian Soybean futures lowers; soymeal lower & soyoil higher.

-- eCBOT Vol. 65,174; Pit Vol. 34,725; Open Interest Change: -661

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



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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