Linn Group Morning Soybean Comment

CHICAGO - Aug 16/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Like many markets worldwide soybeans closed on the defensive on Wednesday
down 11 ½ cents in the November contract. After trading up to 888 in the
November contract just 3 days ago the close of 854 yesterday is a 34 cent
break in just 3 trading sessions. Traders say the bean market seems to be in
trouble, weather is good and a global sell-off across all commodities is not
helping. Volume on Wednesday was moderate with an estimated 93,602 soybeans
traded 38,167 oil and 28,731 meal traded. Funds sold an estimated 5,000
soybeans, 3,000 meal and 2,000 oil.

Overnight soybeans traded 19 ½ cents lower on what is being described as a
global sell off of commodities. Also adding to the sell-off is continued
good growing weather during this key development period in soybeans. USDA
reported weekly export sales of U.S. soybeans at 313,300 mt. (old and new
crop combined), within a range of trade estimates for 175,000 to 400,000 mt.
Malaysian palm oil futures plunged 3.3% overnight hitting seven week lows.
Traders say a glut in supplies and concerns of global credit problems
sparked a selling frenzy. Overnight Chinese soybeans, meal and oil all
closed lower.

Top News

**USDA Soybeans 06/07 Export Sales Net: 236,000 mt; 07/08 Export Sales Net:
77,300 mt; expected 200,000-300,000

**USDA Soybean Meal 06/07 Export Sales Net: 95,500 mt; expected 50-100,000

**USDA Soybean Oil 06/07 Export Sales Net: 15,200 mt; expected 10-30,000

-- Soyrust found in 2 additional Mississippi counties, 1 in south-central &
1 in west-central parts of the state.  Brings total US counties with rust to
74, up from the just over 30 at the same point last year.

-- China edible vegoil output for Jly was 8 pct higher than last year at
1.75 MMT. Total Jan-Jly est at 12.15 MMT up 14.9 pct on the year

-- Dalian Soybean active Jan & May futures 33-43 yuan lower; soymeal &
soyoil futures lower also following eCBOT & lows in Malaysian palm oil
markets

-- Malaysian Palm lower 3.3% on oversupply concerns by producer & overall
cautious outlook for global credit markets.

-- eCBOT Vol. 64,790; Pit Vol. 26,625; Open Interest Change: -1,384

-- Outside markets. Energy complex: crude $1.45 lower, products 300-400 pts
lower ; Gold $7.90 lower & Silver 17c lower; US $ higher vs Euro, sharply
higher vs Yen

Cash Markets

            Bean Barge       Corn Barge        SRW Barge       HRW Track
Ill Riv Frt

Aug      +18/20 X          +57/60 U             +0/+10 U         +50/ U
550

Sep      +21/24 X          +59/63 U             +15/20  U        +60/ U
610

Oc/No   +32/34 X           +52/54 Z             +30/  Z            +60/ Z
610

Truck    Beans               Corn     Wheat               Meal Hi-pro
Oil

Chicago            -60 X               +2 U     -60 U

Toledo   -62 X               +7 U     -15 U

Dec ILL -40 U              -3 U                             -9 U
-275 U



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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