Linn Group Morning Soybean Comment

CHICAGO - Sep 20/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Beans ended Wednesdays session up 1 ¼ cent in the November contract for the
9th. consecutive higher close. After trading as much as 16 ½ cents lower
early in the day the market clawed its way back to positive territory in the
last 15 minutes of trade. Both products recovered from early lows as well
but neither was able to close higher on the day. Traders consensus was wheat
led all grain mkts. Lower after spending a portion of the session limit
down. Volume on Wednesday was moderate to heavy soybeans traded 128,548
contracts on Wednesday, oil, 39.196 and meal 45,677. Funds bought an
estimated 1,000 soybeans, even in meal and sold 1,500 oil.

Today the USDA released their weekly export sales at 513,600 within analysts
range of expectations of 300,000 to 650,000. Meal sales were at the lower
end of the range of expectations and oil sales were within the range of
expectations. Reports out of Brazil’s Mato Gosso region have started
planting soybeans but conditions are less than ideal where forecasts are hot
and dry. US soybean harvest is picking up steam, with many farmers taking
advantage of $9.00 cash bids to sell beans right out of the field. So far,
basis bids at interior locations were holding firm traders say. China is
considering cutting its import duty on soybeans to 1 percent from 3 percent
for three months to help ease inflation pressures, according to a government
source said Thursday. Traders continue to look for support for Nov beans
around the $ 950 area and expect that area to hold on any breaks. Overnight
Chinese soybeans and oil closed lower, meal mixed. Malaysian palm oil
futures closed lower.

Early Opening Calls: 7 to 10 cents higher, meal $3.00 to 5.00 higher, oil
.10 to .15 higher.

Top News

**USDA Soybeans 07/08 Export Sales Net: 513,600 mt; expected 300,000-650,000

**USDA Soybean Meal 06/07 Export Sales Net: 49,500 mt; 07/08 Export Sales
Net: 149,800 mt; expected 50-125,000

**USDA Soybean Oil 06/07 Export Sales Net: 6,300 mt; expected unch-10,000

-- Argentine gov't keeps 07/08 soybean production steady at 47.6 mln mt from
prior months estimate.

-- Argentine gov't ups 07/08 corn acreage to 3.95 mln ha from 3.90 mln ha
from prior months estimate.

-- Soybean import duties in China maybe cut to 1% from the current 3% duty,
according to official from the Chinese Finance ministry

-- Malaysian Palm Board placed production at 1.6 mln mt during August, a
rise of 14.8%. They also said reserves increased by 11.0% during the same
time period to 1.45 mln mt.

-- Dalian Soybean futures ended lower, with active May off 31 yuan/mt.
Soymeal was mixed, nearby Jan 5 yuan higher, however May futures were 18
yuan lower.  Soyoil off in active contract months.

-- Malaysian Palm oil futures lower overnight, as strong export figures
weighed on market

-- Intertek pegged palm oil exports from Malaysia during Sep 1-20 at 892,172
mt, a rise of 21.8%

-- 2007 sunseed production forecast for Ukraine dropped to 3.5 mln mt down
from 4.5 mln mt says deputy ag minister

-- eCBOT Vol. 94,246; Pit Vol. 30,314; Open Interest Change: +1,103

-- Weather: Above Normal Temps. Above Normal Precip. The Corn Belt may see
some scattered showers in the northern regions today.

-- Outside markets. Energy complex lower; Gold & Silver: higher; US $ lower
versus Euro & Yen

Cash Markets

--CIF Soybeans  up 1 to  5. Sept. +35 to +??, Oct. +40 to +45, Nov. +50 to
+55, Dec. +42 to +48, Jan. +47 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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