Linn Group Morning Soybean Comment

CHICAGO - Jul 11/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

The soybean rally continues at the CBOT with November soybeans closing 18 ½
cents higher and another new contract high and new high close. Soybeans
opened higher and never looked back rising steadily over the balance of the
session. The products remained strong with December meal and oil into new
contract highs. Meal was the product leader closing $7.60 higher in December
while oil gained an additional 42 tics. Low soy acreage this year and
outlooks for a sharp drawdown in soy stocks next year continue to lend
support. Volume was large with an estimated 142,886 soybeans traded, 48,173
oil futures traded and 48,568 meal futures traded. Funds ended the day net
buyers of an estimated 6000 soybeans, 1,000 meal and 2,500 oil.

Today we are looking at higher open with the overnight market in November
soybeans gaining an additional 3 cents. Some outlooks for hotter dryer
weather late next week have been supportive. However there have been a
myriad of weather forecasts ranging from a hot dry ridge forming 2 weeks
out, the return of La Nina as well as cooler wet weather and traders say its
tough to know which forecast to rely on. Gulf soybean basis offers fell
sharply for the second day in a row due to the rally in futures. South
American basis levels remain weak but have stabilized. Marubeni has
finalized sale to Taiwan SugarCorp for 16,000 tons of US soybeans, according
to traders Overnight Chinese Soybean, meal and oil futures are sharply
higher. Malaysian Palm Oil futures settled higher.

Early Opening Calls: 2 to 4c higher; soymeal $1 higher; soyoil 10 to 15c
higher

Top News

-- Export News: Marubeni has finalized sale to Taiwan SugarCorp for 29,000
tons of US corn and 16,000 tons of US soybeans, according to traders.

-- June palm oil production fell 2.9% from previous month, acc. to Malaysian
Palm Oil Board.  The industry trade group also pegged ending June palm oil
stocks rose 7.5% from end of May, while June palm oil exports from Malaysia
down 18.1% from prior month.

-- 312,144 mt of Malaysian palm oil exports for the July 1-10 period
estimated by SGS survey

-- Saskatchewan rapeseed crop 78% considered in the good to excellent
category, acc. to local ag dept's weekly progress report

-- Celeres estimates 06/07 soybean crop sales at 73% thru July 6 vs the 5 yr
avg of 73% sold and 75% sold in same time period last year

-- 2007 French canola crop dropped to 4.9 mln mt from prior forecast of 5.13
mln mt, according to French Ag ministry

-- Dalian Soybean, soymeal & soyoil futures sharply higher overnight
following CBOT soy complex.

-- Malaysian Palm oil futures settled at $749/T, a rise of 2.1% vs previous
day.

-- Fund trade mixed Monday. Funds  sold 4,500 Corn, Wheat 1,000. Even Oil.
Bought 2,500 Soybeans, 1,000 Meal.

-- eCBOT Vol. 101,456; Pit Vol. 43,055; Open Interest Change: +3,999

-- Weather: Normal to Below Temps. Normal to below Precip. The Corn Belt
will see showers and thunderstorms today and Wednesday

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