Linn Group Morning Soybean Comment

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

Soybeans gained 15 ¼ cents on Wednesday for the second consecutive higher
close. Traders say that weather problems in the southern growing sections
are at the forefront of the problems. While rains have been abundant and
timely in the northern corn belt southern areas have missed the moisture and
double crop bens in the deep south are not doing well. Some report plants
giving up and dying and others sayint this will be widespread if not rain
over next 5 to 7 days. The problem areas account for approximately 10% of
the crop traders say. Volume was on the light side again on Wednesday with
an estimated 91,639 beans traded, 46,224 oil traded and 39,204 meal traded.
Interesting to note the last 2 rally days in soybeans have been lighter than
normal volume. Funds on Wednesday bought an estimated 6,000 soybeans, 3,000
oil and 2,000 oil.

Today the USDA released their export sales figures and show  Soybeans 06/07
Export Sales Net: 153,300 mt; 07/08 Export Sales Net: 377,100 mt; expected
300,000 - 500,000 mln. Soybean basis levels fell 2 to 7 cents after a steady
increase in the last few days. Big selloffs in the stock market overnight on
the news of 3 hedge funds in Europe having troubles. The European central
bank announced it is selling Euro's and buying dollars today and some
traders say the global investment environment could spill over to the
agricultural commodity markets today. Overnight Malaysian palm oil futures
closed up 1.4% overnight. Chinese soybeans Meal and oil all closed higher
overnight.

Early Opening Calls: beans 2 to 5c higher. Oil .05 to .15 higher, meal $1.00
to $2.00 higher.

Top News

**USDA Soybeans 06/07 Export Sales Net: 153,300 mt; 07/08 Export Sales Net:
377,100 mt; expected 300,000 - 500,000 mln.

**USDA Soybean Meal 06/07 Export Sales Net: 116,400 mt; expected 50-150,000

**USDA Soybean Oil 06/07 Export Sales Net: 29,600 mt; expected Unch-20,000

-- Slightly higher chance of La Nina conditions in the next couple months
forecast by National Weather Service

-- CBOT Soybean Deliveries

Soybean                       796

Soyoil               171

Soymeal                       473

-- Dalian Soybean futures higher; soymeal higher; soyoil sharply higher

-- Malaysian Palm rose 1.4% overnight

-- Cargo analysts, SGS & Intertek, release July Malyasian palm export
volumes for Aug 1-10 on Friday.  Malaysian palm board releases stocks &
production figures of palm oil on Friday-- eCBOT Vol. 60,392; Pit Vol.
27,996; Open Interest Change: -1,882

-- Weather: Above Normal Temps. Below Precip East. Normal to Above West

-- Outside markets. Energy: crude $1.30 lower, products down; Gold sharply
lower $14.50 & Silver 43 to 45c: ; US $ higher vs Euro, lower vs Yen

Cash Markets

--CIF Soybeans lower off  2 - 7. Aug. +?? to +6, Sept. +5 to +15, Oct. +18
to +25, Nov. +25 to +35, Dec. +170 to +28,  Jan. +26 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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