Linn Group Morning Soybean Comment

CHICAGO - Sep 17/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

November Soybeans rallied again on Friday to close 13 ½ cents higher. This
was the 5th. consecutive higher close for soybeans. For the week November
Soybeans gained 49 ½ cents and this is the 4th consecutive higher weekly
close. Traders say much of Fridays gains were on fears of frost damaging the
soybean plants in the northern Midwest. Volume was heavy Friday with 121,596
soybean futures traded, 48,352 soybean oil traded and 50,888 meal traded.
Funds were buyers of an estimated 5,000 soybeans, 2,000 meal and 1,000 oil.

Today’s early opening calls are based upon the overnight trade which rallied
the November contract an additional 16 ½ cents. Volume overnight was heavy
as traders concerns that the Frost was widespread. There are still some
soybeans that might be vulnerable and any reduction in soybean yields would
only add to an already tight supply.  South American analyst Agroconsult on
Friday forecast Brazil’s 2007/08 soybean production at a record 62.3 mil.
mt. up 6.4% from 58.6 mmt. in 2006/07.  Exports of Malaysian palm oil
products for September 1st. through the 15th.  rose 2.2 percent. Reports
this morning of significant crop reduction in major growing regions of China
due to severe drought. Overnight Chinese Soybeans, meal and oil closed
higher. Malaysian Palm oil futures closed higher.

Opening calls: Beans 15 to 17 higher, Meal $ 4.00 to $5.00 higher, Oil .25
to .30 higher.

-- The Commitment of Traders report with Options as of September 11 shows
Funds:
Soybeans  Long  110,424  up  2,805
Meal          Long  57,294  up   3,510
Oil             Long  48,861  up  1,476-- Dalian Soybean futures sharply
higher, Jan 91 yuan higher, May 84; Soymeal higher Jan 100 yuan/mt higher in
Jan, May up 75, Soyoil active May contract 140 yuan/mt higher
-- Funds Friday buying 5,000 Soybeans, 2,000 Meal, 1,000 Oil.
-- eCBOT Vol. 82,344; Pit Vol. 35,423; Open Interest Change: +6,447
-- 6-10 Day Forecast: Above Normal Temps. Above Precip West, Below Precip
East.
-- Outside markets. Energy: crude, products lower, nat gas higher ; Gold &
Silver: higher; US $ lower vs Euro & Yen.

Cash Markets
--CIF Soybeans  steady off 4. Sept. +20 to +28, LH Sept. +?? to +32, Oct.
+31 to +37, Nov. +45 to +50, Dec. +38 to +50, Jan. +46 to +50, Feb. +20 to
??, Mar. +33 to +38



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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