Linn Group Morning Soybean Comment

CHICAGO - Sep 7/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybeans ended Thursdays session on the defensive down 10 ½ cents in the
November contract. After breaking 15 cents early buyers surfaced to rally
beans to unchanged before selling off late in the session. Traders say talk
that the USDA may raise its US soybean production estimate in its report due
out next Wednesday is pressuring the market. Also heavy deliveries in the
September contract are pressuring the market. Volume on Thursday was lighter
than the past few sessions with 96,533 soybeans traded, 44,790 oil traded
and 53,703 meal traded. Funds sold an estimated 5,000 soybeans, 1,000 meal
and 2,500 oil.

Today the USDA released the weekly export sales for soybeans at 432,000 mt
vs expectations of 400,000 to 700,000 mt. Informa released their crop
production estimate for soybeans production of 2.664 bil. bu. with a yield
of 42.1 bpa. November soybeans ended the evening session on the defensive
down 5 ¼ cents. Philippine buyers passed on 7,000 mt of soybeans and opted
to buy 16,000 mt of sorghum instead due to high meal prices. Chinese soybean
crushers are running high capacity which should help demand despite China’s
tight import controls on US and Argentina beans. Overnight Chinese soybeans,
meal and oil futures closed higher. Malaysian palm oil futures closed flat
in quiet trade.

Early Opening Calls: beans 3 to 5 lower, meal $1.00 to $1.50 lower, Oil .10
to .15 lower.

Top News

**USDA Soybeans 07/08 Export Sales Net: 432,000 mt; expected 400,000-650,000

**USDA Soybean Meal 06/07 Export Sales Net: 33,100 mt; 07/08 Export Sales
Net: 48,800 mt; expected 75-175,000

**USDA Soybean Oil 06/07 Export Sales Net: 41,900 mt; 07/08 Export Sales
Net: mt; expected 5-20,000

-- Dalian Soybean futures higher in active contracts overnight.  Soymeal
active futures contracts higher, soyoil futures lower.

-- Malaysian Palm marked time, closing only 1 ringgit higher.

-- Monday Malaysia palm August production, export & endings stocks to be
released.

-- Both Malaysian cargo analysts, Intertek & SGS, will release export
figures for first 10 days of Sept on Monday.

-- eCBOT Vol. 72,326; Pit Vol. 22,711; Open Interest Change: +140

-- Weather: Normal to Below Temps. Normal Precip. The Corn Belt will see

scattered showers and thunderstorms today into Sunday.

-- Outside markets. Energy complex lower; Gold & Silver: both higher; US $
lower vs both Euro & Yen after jobless data release

Cash Markets

--CIF Soybeans steady. Sept. +10. to +16, LH Sept. +20 to +25, Oct. +30 to
+35, Nov. +42 to +52, Dec. +38 to +42, Jan. +42 to +50, Feb. +30, Mar. +25
to +40



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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