Linn Group Morning Soybean Comment

CHICAGO - Aug 13/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

After Fridays USDA crop report Soybeans closed 11 ¼ cents higher. For the
week November soybeans gained 11 ¼ cents. The USDA estimated US 2007/08
ending stocks at 220 mil bu, down from 245 mil bu. forecast in July.
Soybeans in the upper Midwest continue to benefit from good rains this week.
The southern corn belt remains hot and dry where highs have been in the
100’s all week. Traders say weather in the southern crop area are the key to
this latest rally. Volume on Friday was moderate with an estimated 108,000
soybeans traded, 48,852 bean oil traded and 42,881 meal traded. Funds sold
an estimated 5,000 soybeans, 4,000 oil and 7,500 meal.

Today, weather will be the focus as traders turn their attention to reduced
yields in southern growing areas due to extreme heat and lack of rain.
Forecasts for the southern corn belt remain hot and forecasts for
precipitation for the southern area are for some storms but only limited
amounts of coverage. Prices in China are starting to pick up as demand for
soybeans increases. Overnight Chinese soymeal futures traded up 4% (limit
move). Traders say meal is being pushed by feed mills actively building
inventories and crushers beginning to buy due to low inventories. Tomorrow
Tuesday August 14th. NOPA crush will be released. Commitment of Traders
report released Friday shows funds long 102,864 soybeans up 3,777, meal long
42,111 up 7,663 and oil long 53,020 down 6,275. Overnight Chinese soybean
futures closed strong, Meal and oil higher. Malaysian palm oil futures
closed higher overnight.

Top News

-- Analyst expect small decline in corn & soybean crop conditions.

-- CBOT Soy Complex Deliveries:

Soybeans          114

Meal                 171

Oil                    345

-- Funds mostly on the sell side Friday selling 5,000 Soybeans, 7,500 Meal,
4,000 Oil.-- Dalian Soybean futures sharply higher in Monday overnight
trade.  Soymeal 89 yuan higher, while active Jan soyoil futures 38 yuan
higher.

-- Malaysian Palm Oct futures settled 15 ringgit higher, following Chinese &
eCBOT soyoil futures.

-- eCBOT Vol. 72,989; Pit Vol. 32,394; Open Interest Change: +6,893

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

-- Outside markets: Energy complex: crude 90c higher, products higher ; Gold
40c lower & Silver 3c lower; US $ higher vs Euro, unch vs Yen.

Cash Markets

-- CIF Soybeans steady firm . Aug. +1 to +5, Sept. +6 to +11, Oct. +19 to
+25, Nov. +25 to +33, Dec. +20 to +30,  Jan. +20 to +30



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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