Linn Group Morning Soybean Comment

CHICAGO - Sep 4/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

November beans opened up into new highs for the month on Friday but ended
the session on their lows down 2 ½ cents for the day. For the week November
beans ended up 17 ½ cents and ended the month 25 cents higher. Soybeans did
end the month higher, more importantly they ended 90 cents off the lows of
the month. Dry weather in the Delta and southern Midwest remain a concern
and the forecasts don’t call for much help this week. Also boosting soybean
prices is a surging wheat market as that market continues to trade higher
into new all time highs. Volume in Soybeans on Friday was moderate to heavy
with 118,883 soybean futures contracts traded, 49,266 oil and 56,325 meal
traded. Funds on Friday sold an estimated 1,000 beans, 500 meal and even in
oil.

Overnight grain prices soared higher with December wheat limit up (30 cents)
and beans up 13 ¼ cents. For beans the rally is centered around Malaysia
sealing a deal to import 20,000 mt. of US beans and importers are looking
for another 90,000 mt. between October and December sources say on Tuesday.
Also boosting prices is a tender by India to buy 795,000 mt. of Wheat
instead of 500,000 that was originally tendered. Wheat overnight was up
limit up. Friday the USDA released the commitment of traders report showing
funds long 101,084 beans, up 16,056 Meal long 45,949 up 6129 and oil long
24,840 down 31. The supplemental report showing index funds shows funds long
152,234 beans up 1290. Deliveries in beans remain heavy with 1,555
throughout 8/31/07   ADM put out 753. Overnight Chinese Soybeans, meal and
oil all closed higher. Malaysian Palm oil futures closed higher.

Opening calls. Beans 10 to 13 higher, Oil, .20 to .30 higher and meal $4.00
to $5.00 higher.

Top News

-- Grain Export Inspections to be released this morning, delayed due to
Labor Day holiday.

-- USDA Crop Progress report expected at 3pm CDT, delayed due to Labor Day
holiday.

-- USDA reports private sale of 42,000 mt of US Soyoil to Unknown
destination for 06/07 delivery

-- Dalian Soybean futures saw gains in overnight trade; 87 Yuan higher in
active trade for May 08 contract. Soymeal also higher on very active trade,
soyoil also higher

-- Malaysian Palm futures higher on gains by eCBOT & Dalian futures.
Traders also pointed to expected strong import growth.

-- Palm oil exports from Malaysia during August rose 14% vs. July acc. to
Intertek a cargo analyst

-- Malaysian cargo analyst SGS estimated August palm oil exports rose 16%
during August from July

-- Commitment of Traders report with Options as of August 28: Soybeans  Long
101,084  up  16,056

-- CBOT Soybean Deliveries: 1,555 thru 8/31/07; Soymeal Meal 371 thru
8/14/07; Soyoil Oil  646  thru 8/31/07

-- eCBOT Vol. 74,795; Pit Vol. 38,846; Open Interest Change: -443

-- Weather: 6-10 Day Forecast: Above Temps East, Below West. Above Normal
Precip. The Corn Belt will be dry today.

-- Outside markets: Energy complex: crude 33c lower, gasoline lower, heating
oil higher ; Gold 20c lower & Silver 7c lower; US $ higher vs Euro, lower vs
Yen

Cash Markets

-- CIF Soybeans steady up 4. Sept. +10 to +18, LH Sept. +15 to +30, Oct. +32
to +35, Nov. +45 to +52, Dec. +40 to +45, Jan. +42 to +50, Feb. +30, Mar.
+30 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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