Linn Group Morning Soybean Comment

CHICAGO - Aug 15/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybean futures were under pressure Tuesday on wetter, cooler US forecasts
and good rains overnight in northern growing areas. November soybeans lost
15 ¾ cents Tuesday as that market struggles to close above the 880 level
traders say. The recent rains should boost crop prospects in the heart of
the growing regions offsetting any concerns of reduced yields in the south.
Forecast maps continue to bring moisture in many portions of the northern
half of the Midwest and the market appears ready to discount the lower
producing south traders say. Volume was moderate with 94,787 soybeans
traded, 43, 720 meal and 44,334 oil traded. Funds were net sellers of 5,000
beans, 4,000 oil and 2,000 meal.

Today early calls are for a slightly firmer open with beans called to open a
penny or two better following firm overnight trade. Freight rates have been
rising which traders say has started to affect demand overseas. Indian
vegoil imports for the year are estimated at 5.8 mmt. compared to 6.4 mmt
estimated earlier. Current weather patterns are expected to add to bean
yields and the 6 to 10 day forecast calls for normal to above normal temps
and normal to below normal precipitation. Concerns of continued hedge fund
problems could influence markets if liquidation continues. Overnight Chinese
Soybean, meal and oil futures closed lower. Malaysian Palm oil futures
closed lower.

Early Opening Calls: steady/1c higher; soymeal steady, soyoil 10c higher

Top News

-- Dalian Soybean futures active contracts settled down 2 to 6 yuan lower;
Jan soymeal was unchanged, but May 11 yuan higher; Jan soyoil -88 yuan/mt

-- Malaysian Palm oil futures settled 1% lower, following Chinese & Chicago
markets

-- Malaysian palm oil exports for Aug 1-15 pegged at 570,107 mt up 21% from
same period in July at 470,320 mt, acc. to Intertek

-- eCBOT Vol. 64,631; Pit Vol. 27,621; Open Interest Change: -1,479

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

-- Outside markets. Energy complex crude 50c higher; products higher; Gold
down 3.60 & Silver 30c lower; US $ higher vs Euro, lower vs Yen

Cash Markets

--CIF Soybeans. Aug. +7 to +12, FH Sept. +13 to +15, LH Sept. +15 to +20,
Oct. +21 to +28, Nov. +30 to +35, Dec. +20 to +30, Jan. +25 to +35



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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