Linn Group Morning Soybean Comment

CHICAGO - Oct 8/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

The soybean market was lower on Friday from harvest pressure and traders
liquidating the soybean leg of the inter-commodity spreads that many traders
have been riding for the last month or so.  The weather remains very
conducive to harvesting the soybean market and yields keep coming in bigger
than expected.  Remember, this time of the year, harvest pressure is very
common and will push the market lower.  Exports remain very strong,
especially for meal as we continue to see different countries into the US
for meal almost everyday.  The funds were very active selling almost 5,000
contracts by the end of the day.  The market seemed to shake off the Informa
numbers that were released early in the trading day as some traders had the
number early, so the numbers seemed to already be in the market.  Soybean
rust continues to make its way north with new reports in a couple of
counties in Nebraska.  This is the farthest it has come north and will add
to the cost of growing beans because of prevention, but they did note that
the rust in Nebraska won't have a material affect this year because most of
the crop has already been harvested.

eCBOT market was lower overnight as the wheat market is leading the grain
complex lower and soybeans are followed.  The long soybean/short corn
inter-commodity spread has been a favorite trade the last 4-6 weeks but were
are starting to see some traders cover the trade, so that is adding pressure
to the soybean market as well as harvest pressure. Export news this morning
has Mexico around the bean market and Israel and So. Korea are into the US
for soymeal.  The market will await the release of harvest progress this
afternoon with most traders expecting this number to grow to 45% complete.
Brazil received some very much needed rains over the weekend which will help
the bean crop already planted and help the soil moisture levels for areas
that aren't planted.  These rains were expected, but it is always nice to
receive the rains that were forecasted.  After talking to traders this
morning, the main drivers for the bean market this morning is rains in
Brazil and the wheat market.  The wheat market is under pressure and without
the lack of any real news, beans will follow the wheat market lower.

 eCBOT Overnight

Contract            Last      Net Change       High      Low

ZSX7                 935^6    -4^6                  939^2    931^6

ZSF8                954^0    -6^0                  957^0    950^0

ZSH8                967^0    -4^2                  969^0    962^4

ZSK8                972^0    -4^0                  973^2    967^2

ZSN8                979^0    -3^0                  981^0    974^6

ZMV7                256.0    -3.4                   258.7    256.0

ZMZ7                263.4    -2.0                   264.8    262.2

ZMF8                264.9    -2.9                   266.6    264.7

ZLV7                 38.55    0.05                  38.55    38.18

ZLZ7                 38.88    -0.15                 39.17    38.70

ZLF8                 39.40    -0.20                 39.40    39.32

Early Opening Calls: 3-5 lower

Top News

-- South Korean feed manufacturer has issued a tender to purchase 110,000
tons of soybean meal, US or South American origin, for shipment in 1Q 2008,
acc. to traders

-- Australian rapeseed production takes yet another hit, with a trade group
recently projecting a crop of only 1.053 mil tons, a decline of -16.8% from
previous estimates

-- Australian rapeseed crop still better than 06/07, acc. to industry
sources, when only 512k tons were produced

-- "Greenlight" given by Chinese regulators for Dalian Exchange to launch
palm oil futures soon, exchange official says they could start trading as
soon as year's end

-- Dalian Soybean futures Dalian Soybean futures active May contract down
127 Yuan/mt after trading

resumes after week long holiday; soymeal futures down 103 Yuan/mt in very
active May contract, most other soymeal down. Active May soyoil futures 50
lower.

-- Malaysian palm oil closed -1.1% overnight to $750/ton on continued
concern over soybean oil values, currencies

-- eCBOT Vol. 136,653; Pit Vol. 46,364; Open Interest Change: -3,740

-- The Commitment of Traders report with Options as of October 2 shows
Funds: Soybeans Long 124,031 off 6,365; Oil Long

47,499 off 8,175; Meal Long 58,773 off 5,391

-- Weather: Above Normal Temps. Normal to Above Precip. The Corn Belt will
see showers and thunderstorms move west to east today into Tuesday.

-- Outside markets. Energy: crude off 80c, products lower also; Gold &
Silver: lower; US $ futures markets closed.

Cash Markets

--CIF Soybeans 1-4 lower.  Oct. +32 to +36, LH Oct. +35 to +44, Nov. +46 to
+54, Dec. +40 to +44, Jan. +48 to +50, Feb. +30 to ??, Mar. +37 to +??



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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