Linn Group Morning Soybean Comment

CHICAGO - Oct 15/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Fridays session ended with Soybeans down 4 ¾ cents on the heels of the
release of the USDA crop report. Interesting to note the production report
was bullish and the markets initial reaction was positive but profit taking
early on the gains kept the market lower. The USDA report took bean
production off 21 to 2.598 bil. bu. and bpa yields were unchanged. Weekly
export sales were also released on Friday and showed 55o tmt or 20 mil. bu.
total sales to date are 389 mil. bu. vs. 408 mil bu last year. Volume on
Friday was very heavy in beans with the CBOT reporting 180,882 soybeans
traded, 47,514 meal and 49,369 oil traded. Funds sold an estimated 4000
beans, 3,000 oil and bought 1,000 meal.

Today’s early opening calls are 7 to 10 cents higher. Beans are expected to
be supported on soaring crude oil and gold prices. Also supportive to the
bean complex is wet weather slowing harvest in portions of the US. Brazil’s
Mato Grosso region which has suffered from extreme dry conditions benefited
from some showers over the weekend but more rain is needed to relieve the
dry conditions. The NOPA crush report released this morning shows soybean
crush at 139,829 bil. bu. for September. This was above analyst estimates
for a crush of 136.7 and an august crush for 137.6. Cash basis bids for soy
in the Midwest late on Friday were firm at processor and elevator locations
but weak at river locations due to weak export demand, cash dealers said.
The Commitment of traders report released Friday shows funds long 131,129 up
7098, Meal long 56,915 down 1,858 and oil long 51,915 up 4,224. The
supplemental report showing index fund positions shows index funds long
159,289 down 46. Overnight Chinese Soybeans, meal and oil all closed higher.
Malaysian Palm oil futures closed higher.

-- Private crop forecaster, AgRural, sees 07/08 Brazil Soybean crop at 62.8
mln mt down from July's estimate of 63.3 mln mt

-- India vegoil industry group says Sept imports of vegoil rose 22.9% from
year ago month, 446,721 mt were imported

-- India base import prices of vegoils kept unchanged acc. to finance
minister

-- The Commitment of Traders report with Options as of October 9 shows
Funds: Soybeans Long 131,129 up 7,098; Meal Long 56,915 off 1,858; Oil Long
51,723 up 4,224

-- Dalian Soybean futures higher overnight, May 44 yuan/mt higher; soymeal
48 yuan/mt higher; soyoil futures were 30 yuan/mt higher.

-- Malaysian Palm

-- eCBOT Soybean Vol. 140,951; Pit Vol. 35,414; Open Interest Change: +6,742

-- Weather: Above Normal Temps. Normal to Above Precip. The Corn Belt will
see a chance of scattered showers and thunderstorms almost every day this
week.

-- Outside markets. Energy: crude higher, products higher ; Gold $9.00
higher & Silver: 19c higher; US $ lower vs Euro, slightly higher vs Yen.

Cash Markets

--CIF Soybeans off 2 to 7. Oct. +15 to +20, LH Oct. +?? to +28, Nov. +?? to
+41, Dec. +30 to +42, Jan. +42 to +50, Feb. +25 to +38, Mar. +35 to +45



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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