Linn Group Morning Soybean Comment

CHICAGO - Aug 14/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybeans opened 13 ¾ cents higher on Monday on renewed concerns over hot and
dry weather in southern areas of the US growing region. Hot and dry
conditions are predicted to continue to stress crops in southern Midwest for
the next week. Also supportive Monday was the expectation of a drop in
weekly soybean crop condition ratings. Volume was extremely light at the
CBOT ag complex. With an estimated 82,638 soybean futures traded, 33,022
meal and 23,140 oil futures traded. Funds bought an estimated 3,500
soybeans, 2,000 meal and 1,500 oil.

Today’s focus will center around the release of yesterday afternoons weekly
crop conditions report. The weekly crop condition report showed no change in
the good to excellent category for soybeans which was a surprise to traders.
Traders indicated they expected a decline in the crop conditions of 1 to 3%
and the fact that they are unchanged will add a bearish tone to today’s
market initially. Today the July NOPA crush was released showing US crush at
142.524 mil. bu. below the average estimate of 143.1 mil. bu. NOPA reported
July soymeal exports at 481,033 tons, up from 453,261 tons in June. NOPA
reported July U.S. soyoil stocks at 2.835 billion lbs, down from 2.951
billion in June. Argentina has restricted energy use due to an extremely
cold winter which in turn is restricting oil seed crushings. Some of the
Argentine export business has been shifted to the US gulf as a result.
Reports of harvest starting in the deep south with good yields being
reported. Overnight Chinese soybean meal up sharply again, beans higher, oil
lower. Malaysian palm oil futures down .

Top News

**NOPA July Soybean Crush: 142.524 mln bu; expected 143.1 mln bu

**NOPA July Soybean Oil Stocks 2.835 bln lbs vs 2.951 bln in prior month

**NOPA July Soybean Meal Exports 481,033 T vs 453,261 in prior month

-- Soybeans rated 56% good to excellent vs. 56% last week

-- Dalian Soybean futures mixed in overnight trade; soymeal settled higher;
soyoil 56 yuan lower

-- Malaysian Palm oil futures down 1.6%.  Trade looking toward Wednesday's
revised Aug export numbers.

-- eCBOT Vol. 54,031; Pit Vol. 25,699; Open Interest Change: +2,472

-- Weather: Above Normal Temps.  Below Normal Precip. The Corn Belt will see
scattered showers and thunderstorms today

-- Outside markets. Energy: crude 45c higher, products 110 pts higher; Gold
& Silver both lower; US $ up against the Euro, lower vs the 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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