Linn Group Morning Soybean Comment

CHICAGO - Aug 20/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybeans rebounded on Friday closing 13 ¼ cents higher after Thursday’s
steep losses. Futures were lower overnight coming into Friday mornings open
but market sentiment turned bullish after the Fed cut the discount rate by
50 basis points. Traders say the fed rate cut changed market sentiment
across all markets. Traders report heavy trade in the first thirty minutes
of the session and the rest of the morning prices slowly gained in value
throughout the session. Funds on Friday bought an estimated 6,000 soybeans,
2,000 oil and 1,500 meal. Volume was heavy with an estimated 107,397
soybeans traded, 55,661 oil and 43,756 meal.

Today’s early calls are lower after a weekend of widespread rains swept over
the growing regions helping beans complete their key pod filling. Rain
accumulations have been heavy. With reports of 3 to 5 inches of rain in  So.
Dakota, Min, Wisc, Mich and reports of rain so make their way into south
areas of Ill, IN, and Ohio. The commitment of traders report released on
Friday show funds long 107,900 soybeans an increase of 5,041, 46,100 oil a
reduction of 6952 and 45,900 meal long an increase of 3,716. Index funds
show long 362,457 soybeans down 6,982, Oil long 150,860 down 3,322 and meal
long 72,342 a reduction of 993. Overnight Malaysian Palm oil futures closed
higher after spending most of the session lower.

Early Opening Calls: 3 to 5c lower; meal 50c lower; soyoil 20c lower

Top News
-- CropScout.com yield tour has begun.  Crop scouts Monday will be
canvassing Nebraska, Indiana, Ohio, and Illinois.
-- USDA weekly crop conditions & progress report released at 3 pm CT Monday.
Analysts expect unchanged to slightly improved conditions for soybeans.
-- Malaysian Palm down 12 ringgit at 2,366 ringgit, at lowest level since
June 28
-- First 20 days of August saw Malaysian palm exports pegged 20.6% higher
than the same period in July acc. to shipping analyst SGS
-- Intertek estimates Malaysian palm crude oil export in period from Aug 1 -
20 at 732,667 mt a rise of 13.7% from same period in July
-- eCBOT Vol. 72,779; Pit Vol. 29,272; Open Interest Change: -9,909
-- Weather: National Weather Service 6- to 10-day forecast for Aug. 25-29
calls for below-normal temps over much of the western Corn Belt,
below-normal precip is seen across the Corn Belt.
-- Outside markets. Energy: crude 65c lower, products lower ; Gold 50c lower
& Silver 12c higher ; US $ lower vs Euro, higher vs Yen.

Cash Markets
               Bean Barge              Corn Barge              SRW Barge
HRW Track              Ill Riv Frt
Aug           +20/30 X  +58/60 U    +0/+10 U               +62/ U
575
Sep           +22/32 X  +61/68 U    +10/20  U              +65/ U
650
Oc/No       +40/45 X  +55/58 Z     +30/  Z   +63/ Z      650

Truck       Beans      Corn         Wheat                     Meal Hi-pro
Oil
Chicago     -60 X        +2 U        -60 U
Toledo       -62 X        +10 U       -15 U
Dec ILL     -37 U        +0 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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