Linn Group Morning Soybean Comment

CHICAGO - Sep 10/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

November Soybeans ended Fridays session very strong up 12 ¾ cents. For the
week beans were 22 ¾ cents higher. The bean complex opened stronger than
expected but broke 5 cents until a midsession rally led by wheat and corn
brought beans back. Beans then rallied in the last hour making their highs
late in the session. Volume was moderate with 96,332 soybeans traded on
Friday, 44, 760 oil and 40,351 meal traded. Funds were all on the buy side
buying an estimated 5,000 soybeans, 3,500 meal and 2,000 oil.

Todays market is expected to open higher led once again by a surging wheat
market. Beans overnight are up another 7 cents and wheat is up 21 ½ cents
overnight. The focus this week will be centered around the much anticipated
monthly crop production estimates. Estimates for soybean production are
2.650 bil. bu vs. Aug estimated of 2.625 bil bu and a bushel per acre
estimate of 41.9 bpa vs. the Aug estimate of 41.5. Ending stocks estimates
are for 2006/07 soybeans at 561 vs. Aug estimate of 575 and 2007/08 estimate
of 217 vs. Aug. estimate of 220. China’s National Grain and Oil Info center
lowered their estimate for 2007 Chinese Soybean production to 14.4 mmt vs.
their previous estimate of 14.8 mmt. Weekly crop progress is due out this
afternoon. Friday after the close the CFTC released the weekly commitment of
traders report as of September 4th showing Soybeans long 107,691 up 6535,
Oil long 37,385 up 12545 and meal long 53,784 up 7,835. The supplemental
report shows index funds long 157,152 soybeans up 4,918. Overnight Chinese
Soybean, meal and oil futures sharply higher. Malaysian Palm oil futures
ended higher.

Early Opening Calls: Soybeans 5 to 7c higher, Soymeal 70-90c higher, Soyoil
30-35c higher

Top News

*USDA Weekly Crop Progress Report released at 3PM CDT.

-- 2007 Soybean production lowered to 14.4 mln mt from 14.8 in prior
estimate by China's CNGOIC

-- Dalian Soybean futures sharply higher overnight, Jan 66 yuan higher, May
64 yuan/mt higher.  Soyoil & Soymeal also higher following gains in
overnight eCBOT.

-- Malaysian Palm oil futures ended higher at 2,500 ringgit, a rise of 1.2%

-- Cargo watchers report mixed Sept 1-10 palm oil export.  Intertek reported
a 9.3% rise of exports to 413,299 mt vs same period in August.  SGS reported
a Decline of 10.7% to 334,800 mt of palm oil exports

-- eCBOT Vol. 70,629; Pit Vol. 23,035; Open Interest Change: +3,562

-- Weather: 6-10 Day Forecast: Below Normal Temps. Normal to Below Precip.
The Corn Belt will see some scattered showers west and north today.

-- Outside markets. Energy: crude lower, products lower also; Gold $3.20
higher & Silver: slightly off; US $ lower vs Euro, higher vs Yen

Cash Markets

--CIF Soybeans off 1 to 5.  Sept. +7. to +15, LH Sept. +17 to +22, Oct. +27
to +32, Nov. +40 to +52, Dec. +38 to +42, Jan. +42 to +50, Feb. +25, 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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