The compound La0.66Ba0.40Mn0.61Fe0.33O3 shows anisotropic magnetic correlations with no long-range order. Specific heat measurements suggest these correlations represent the bulk. Orbital correlations of Mn(3+)e(g) electrons, surviving in an environment of largely disordered exchange interactions, are invoked to account for this magnetic state. These results argue in favor of a strain-field mechanism for orbital ordering in manganites.725