Linn Group Morning Soybean Comment

CHICAGO - Jul 23/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybeans ended the week much like it started, down. For the day November
soybeans ended down 6 ¾ cents. For the week November soybeans lost 73 ¼
cents. Since the release of the USDA’s acreage reduction for soybeans the
soybean market surged higher to new contract highs until last week. Changes
in weather bringing in wetter cooler forecasts last weekend put an abrupt
end to the surge in prices. Volume was moderate to quiet on Friday with an
estimated 103,016 soybean futures traded, 44,162 soybean oil and 39,966 meal
futures traded. Funds sold an estimated 3,500 beans, 500 oil and 800 meal.

Today’s focus goes back to weather as it usually does this time of year
especially for soybeans. Early calls are 7 to 10 cents lower based upon
favorable weather conditions. Weather will be most important for soybeans in
the next few weeks as we approach the key pod setting stage. Rains have
moved across the dry parts of Iowa and are being blamed for the lower prices
overnight. Friday's CFTC commitments of traders report for futures and
options combined showed that as of last Tuesday, large speculators were long
150,205, down 14,685 from the previous week and short 25,169, down 5,134.
Index funds were long 162,094, up 7,913 from the previous week. In Mea,
large speculators were long 61,963, down 459 from the previous week and
short 7,638, up 22.and short 7,499, up 3,181. In Oil, large speculators were
long 77,503, down 3,547 from the previous week and short 13,166, down 133.
Index funds were long 78,613, down 1,159 from the previous week and short
3,234, up 408.  Chinese Soybean futures and meal closed lower and bean oil
slightly higher. Malaysian crude palm oil futures closed 1 percent lower on
Monday, dragged down by lower prices of rival soybean oil and declining
exports.

Early Opening Calls: Beans 7 to 10 cents lower, meal $ 2.00 to $3.00 lower
and oil .20 to .30 lower.

Top News

-- 55,000 mt of soymeal tender for by Nonghyup feed of S Korea, acc. to cash
merchandisers

-- China's agriculture ministry said on it's web site Monday that
stabilizing the autumn grain supply is going to be a big challenge because
of floods, droughts, typhoons, plant disease, and insects.

-- Chinese customs data shows June soybean imports fell 31% to 2.52 mln mt
vs same month year ago.

-- Chinese customs data shows 13.9 mln mt of soybeans were imported in 1st
half of 2007, down 1.4% from same period year ago.

-- Dalian Soybean futures settled lower in overnight trade.  Soymeal was
also under pressure, however soyoil settled slightly higher.

-- Malaysian Palm crude oil futures were lower in overnight trade.

-- eCBOT Vol. 73,837; Pit Vol. 27,309; Open Interest Change: -7,469

-- Outside markets. Energy: crude 44c lower, products also lower ; Gold &
Silver: slightly higher; US $ unchanged to slightly higher

Cash Markets

            Bean Barge       Corn Barge        SRW Barge       HRW Track
Ill Riv Frt

Jly        -32/-16 U           +42/43 U              -5/   U
430

Aug      -30/-22 U           +43/44.5 U          +12/  U           +60/ U
460

Oc/No   -25/-5 X +35/38 U             +30/  Z            +70/ U
600

Truck                Beans   Corn    Wheat              Meal Hi-pro
Oil

Chicago                       -65 Q    +4 U    -60 U

Toledo              -56 Q    +9 U    -35 U

Dec ILL            -54 Q    -18 U                          -14 Q
-385 Q



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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