Linn Group Morning Soybean Comment

CHICAGO - Sep 11/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

November soybeans closed up 12 ¾ cents on Monday. This was a new high close
for the recent move and traders say the market is now positioned to go after
the July Highs of 949 ½ for the November contract. Volume was moderate to
heavy with 93,647 soybean contracts traded, 42,347 oil and 53,952 meal.
Traders say the market opened  little better than expected with funds early
buyers of 2,500 contracts and a constant bid under the market kept beans
higher all day. Funds were active buyers buying a net 5,000 beans, 2,000 oil
and 1,500 meal.

Traders say they expect a quiet trading session in advance of tomorrows very
important crop production numbers. Overnight soybeans ended the session down
3 cents. Yesterday after the close the USDA released the weekly crop
progress report showing soybeans rated 56% good to excellent. A Chinese
think tank cut it’s 2007 soy crop forecast by 9.8% to 14.4 mmt due to
drought conditions in China. A cold spell is moving through the upper
Midwest has some areas looking at possible frost. Canola futures reached new
highs on Monday despite harvest pressures. Funds were active buyers buying
an estimated 500 to 1,000 contracts.  Statscan released their crop report
saying canola stocks were 1.82 million mt., compared to trade estimates
ranging from 1.2 to 1.7 million mt., and averaging 1.4 million

mt. Overnight Chinese soybean, meal and oil futures closed higher. Malaysian
Palm oil futures closed higher.

Early opening calls: beans down 2 to 3 cents, Oil steady to .05 higher and
meal $ 1.00 to $ 1.50 lower.

Top News

**StatsCan Canola Stocks July 31: 1.82 mln mt; expected 1.4 mln mt

-- USDA releases its monthly crop production & supply/demand figures
Wednesday at 7:30 AM

-- Wednesday France's ag crop forecaster, ONIC, will release its crop
production estimates & supply demand monthly forecast.

-- EU grains crop forecasts & supply demand figures will be released on
Thursday by Strategie Grains analysis firm

-- Monday's Weekly Soybean conditions: 56% good to excellent; 27% fair.  32%
dropping leaves vs 25% 5 yr avg.

-- Monday's USDA Soybean Export Inspections: 5.823 mln bu.; prev week 12.049

-- August Chinese Soybean imports pegged at 2.9 mln mt, a decline of 3% from
same month year ago, according to customs data

-- Dalian Soybean futures higher overnight; active soymeal & soyoil futures
higher in overnight trade

-- Malaysian Palm futures ended unchanged from yesterday at 2,500 ringgit

-- Deliveries: Soybeans 1,539; Oil 950; Meal 413

-- eCBOT Vol. 66,993; Pit Vol. 21,900; Open Interest Change: -594

-- Weather: Above Temps West, Below East. Below Normal Precip. Most of the
Corn Belt looks dry today and Wednesday.

-- Outside markets: Energy complex: crude lower, products lower; Gold &
Silver both higher; US $ lower vs Euro, slightly higher vs Yen

Cash Markets

-- CIF Soybeans  up 1 to 4.  Sept. +9. to +120, LH Sept. +14 to +23, Oct.
+22 to +32, Nov. +40 to +50, Dec. +38 to +42, Jan. +45 to +52, 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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