Linn Group Morning Soybean Comment

CHICAGO - Nov 2/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

January Soybeans closed 19 ¼ cents lower on Thursday in a volatile session.
Soybean futures at the Chicago Board of Trade were called 3 to 5 cents per
bushel higher on Thursday on follow-through technical buying after making
contract highs overnight and on good export sales data, traders said. But
the calls were easing as crude oil tumbled, down more than $2 a barrel. The
session was marred by what appeared to be a mechanical system error on the
ECBOT screen. In the opening 2 minutes of trade Jan Beans traded in a 42 ½
cent range. The price volatility was not limited to Soybeans alone. Front
month December Soybean oil traded in a range of 136 pts from 42.39 to 41.03
and settled at 42.07 down 24 points. Traders say pressure from a sell-off in
the crude oil market had a major impact on Thursday’s price action in the
bean complex. Volume was heavy on Thursday, 179,805 Soybeans, 65,924 Bean
Oil and 65,377 Meal. Funds sold an estimated 7,000 soybeans 2,000 Oil and
4,000 Meal.

Early opening calls are slightly higher. For the last several sessions the
grain and oilseed markets have been under the influence of outside markets,
Crude, US Dollar and Gold and traders indicate they expect that to continue.
Firm crude oil today and a weak dollar are expected to support the soy
market in addition to a technical short-covering bounce after the sharp
declines on Thursday. FC Stone released their estimate for U.S. soy
production on Thursday and they were  below the company's previous forecast
but above USDA's current outlook. Their Soybean yields were forecast at 42.2
bpa vs. 41.4 from the USDA. As expected Taiwan overnight bought 12,000 mt.
of U.S. soy.  Overnight. Chinese Soybean, Meal and Oil futures closed lower.
Malaysian Palm Oil futures closed slightly lower.

Early Opening Calls: 2 to 3c higher; Soymeal steady to +$1; Soyoil steady

Top News

**US Census Bureau estimates September soybean oil stocks at 2.912 bil lb

**US Census Bureau pegs September Soybean Oil Production at 1.422 bil lb,
slightly higher than the previous month and same time last year

-- US Farm Bill debate continues in the Senate - Majority Leader quoted as
saying it may be done within a week, but other legislature may compete for
time

-- FC Stove Nov production estimates US Soybean production at 2.651 bil.bu.
vs. September estimate Of 2.772

-- Taiwan tendering for 23,000 mt. US Corn and 12,000 Soybeans for Dec

-- Exports of Soymeal during October were 1.2 mln mt from the prior month,
while Soyoil exports were 193,700 mt during October, acc. to Brazilian Gov't

-- Potential demand from Indian biofuel producers said to be supporting
robust regional vegetable oil prices, suggest analysts

-- CBOT Soybean Deliveries: 28 thru October 16

-- Dalian Soybean futures 32 yuan/mt lower basis the May contract; Soymeal
finished 51 yuan/mt lower at 3283; Soyoil futures sharply lower off 86
yuan/mt to 8860 yuan/mt

-- Malaysian palm oil declined slightly overnight, finishing at $873/ton,
analysts see profit-taking

-- eCBOT Soybean Vol. 133,999; Pit Vol. 38,394; Open Interest Change: -4,247

-- Weather: 6-10 Day Forecast: Normal to Below Temps. Normal to Below
Precip.

-- Outside markets. Energy: Crude 25c higher at 93.73/bbl, product higher
also ; Gold $4.00 higher & Silver: slightly higher; US $ mixed, lower vs
Euro, slightly higher vs Yen.

Cash Markets

--CIF Soybeans steady . Nov. +31F to +40F, Dec. +44 to +50, Jan. +49 to +55,
Feb. +33 to +42, Mar. +38 to +43, Apr. +37 to +40, May +37 to +40, J/J +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/

DISCLAIMER: Futures and options trading involve substantial risk. The valuation of futures and options may fluctuate, and as a result, clients may lose more then their original investment. In no event should the content of this website be construed as an express of an implied promise, guarantee or implication by of from the Linn Group, Inc. that you will profit or that losses can or will be limited in any manner whatsoever. Past performance is not necessarily indicative of future results. Information provided on this website is intended solely for informative purposes and is obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.

Information on this page is derived from third parties and is deemed to be reliable. STAT Communications Ltd. accepts no responsibility for errors, omissions or inaccuracies in any of the material presented on this web site. Opinions expressed on this web site are those of the respective individuals and/or institutions and do not represent the opinions of STAT Communications Ltd. or its management.