Linn Group Morning Soybean Comment

CHICAGO - Jul 20/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybeans gained 5 ½ cents on Thursday. This was the 2nd consecutive higher
close after plummeting almost 90 cents on Monday and Tuesday. Traders say
soybeans remain locked in a weather story and that should continue as we get
into the key development stages of their growing period. Beans recovered
Thursday from a weak start caused by substantial rains spread across Il.,
IN, and Ohio. Forecasts for hotter dryer conditions in the next week to 10
days helped support the market. The products also closed higher despite  the
CBOT raising its initial margin in soybean meal to $1,823.00 per contract
from @ $1,283.00. Meal ended .90 higher in the August contract and oil ended
the session .17 higher in the December contract. Volume was estimated at
115,424, Oil volume was estimated at 38,425 and meal volume 50,997. Funds
were net buyers of 2,500 soybeans, 500 oil and 1,000 meal.

Outlooks for hotter and drier weather next week in the Midwest are expected
to keep a floor under the bean complex. Overnight November soybeans gained
an additional 5 ½ cents over yesterdays close. Technical traders point to
support at 860 for November and resistance at 9.00. Early calls are expected
to be higher but traders say they expect choppy trade today. Overnight
Chinese Soybeans meal and oil all closed higher. Malaysian Palm oil futures
closed higher.

Top News

** CropScout.com**

-- Dalian Soybean futures settled higher on Friday taking their lead from
eCBOT soybean futures.  Chinese soymeal & soybean oil futures also rose.

-- EU veg oil markets were also strong focusing on further reductions in
that area's rapeseed crop.

-- Malaysian Palm oil futures bouyed by eCBOT gains, rose 0.8%.

-- Malaysian palm oil exports in the July 1-20 period were off 2.6% at
644,332 mt vs June 1-20 period, acc. to analyst Intertek.

-- Malaysian palm oil exports in the July 1-20 period pegged export sales at
638,163 mt down 5.5% vs June 1-20 period, acc. to analyst SGS

-- eCBOT Vol. 84,490; Pit Vol. 30,489; Open Interest Change: -215

-- Outside markets. Energy complex lead month crude lower, but deferreds
higher, products lower; Gold $1.20 higher & Silver 7c higher; US $ lower vs
Euro & Yen, China raised 1 yr lending & borrowing rates.

Cash Markets

            Bean Barge       Corn Barge        SRW Barge       HRW Track
Ill Riv Frt

Jly        -13/-12 Q           +41/43 U              -5/  U
430



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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