Linn Group Morning Soybean Comment

CHICAGO - Nov 5/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybeans rebounded on Friday from Thursday’s 20 cent drop, supported by a
firmer crude oil market and the continuation of the US dollars slide. Jan
beans ended Fridays session 10 ¼ cents higher. Other factors influencing
soybeans on Friday was the release of Informa Economics latest estimate of
the 2007 soybean crop. They trimmed their estimate to 2.628 bil bu, with an
average yield of 41.8 bpu. This forecast was still above the USDA’s
forecast. Volume was heavy on Friday although not as much as recent
sessions. The CBOT reported 123,601 Soybeans, 32,730 Oil and 33,019 meal
traded Friday. Funds were buyers of an estimated 3,000 Soybeans, 3,000 Oil
and 2,500 Meal.

Early opening calls today are lower as traders indicate a profit taking type
setback today from gains on Friday. Also weighing on the market today is a
slightly higher US dollar and lower crude oil prices. Pressure also stemming
from big harvest weekend in the U.S. Midwest and early fall in crude oil
markets amid a firm dollar. Good South American crop weather also weighing
on soy futures.  South Korea has purchased 21,000 MT of non GMO Chinese
Soybeans overnight.Chinese Soybean and Oil futures closed higher, Meal
mixed.  Overnight Malaysian Palm oil closed mixed. Indian Soyoil closed
lower.

Early Opening Calls: 5 to 6c lower; soymeal $2 lower; soyoil 15-20c lower

Top News

**USDA reports private sale of 100,064 mt of Soybean sold to Mexico for
07/08 market year

-- Ukranian legislators have officially pushed the start date of grain
exports back to Jan '08, instead of Nov '07

-- Informa on Friday pegs '07 Soybean Production at 2.628 bil bu on an
average yield of 41.8 bpa - this represents a nominal decline from last
month

-- Informa on Friday forecasted 2007 Cotton production at 18.229 mil bales
on a yield of 830 bpa, this is an increase of +1.91% from last month

-- CBOT Soybean Deliveries: 122 thru Term

-- Study estimates $150 Bln will flow into Commodity Indicies during 2008 up
from the estimated $110 Bln this year, acc. to S&P study

-- The Commitment of Traders report with Options as of October 30 shows
Funds:

Soybeans Long 133,178 off 1,293

Meal Long         68,005 up 2,573

Oil Long            59,163 up 4,676

-- Dalian Soybean futures higher, May +45 yuan/mt to 4419 yuan/mt; soymeal
May futures +2 yuan/mt to 3285 yuan/mt; soyoil futures up 60 yuan/mt to 8920
yuan/mt.

-- Malaysian Palm slightly higher in overnight trade, but volume of trade
about 1/2 of average daily volume

-- eCBOT Soybean Vol. 97,711; Pit Vol. 22,359; Open Interest Change: -9,039

-- Weather: 6-10 Day Forecast: Normal to Below Temps. Normal to Below
Precip. The Corn Belt looks dry today and Tuesday.

-- Outside markets. Energy: crude off 1.50 to $94.37/bbl, products lower
also ; Gold slightly lower & Silver: slightly higher; US $ higher vs Euro,
but off against Yen basis the Dec futures.

Cash Markets

--CIF Soybeans steady firm. Nov. +32F to +39F, Dec. +43 to +50, Jan. +50 to
+55, Feb. +35 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.