Linn Group Morning Soybean Comment

CHICAGO - Nov 6/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Jan beans closed 4 ¼  higher after a lower open on Monday. Traders say a
rally in wheat helped support the Bean complex and volatile Crude oil led to
choppy trade. Early selling pressure stemmed from profit-taking and a big
harvest weekend in the U.S. Midwest. Scattered commercial hedge pressure
weighed on market. USDA reported weekly export inspections of U.S. soybeans
at 22.1 million bushels, within a range of trade estimates for 20 million to
25 million. After the close yesterday the USDA released weekly crop progress
report shows soybean harvest 92% complete vs. 84% a week ago. This is above
traders expectations of  88 to 90 percent complete.  Funds bought an
estimated 2,500 Soybeans, sold 1000 Oil bought, 1,500 Meal. Volume was light
on Monday 79,559 Soybean futures, 28,055 Oil and 39,994 Meal traded.

Early opening calls are higher supported by surging crude oil prices (into
new highs again this morning) rallying gold and another new low in the US
dollar. Traders say Wednesday begins the Goldman Roll. Brazil grain analyst
Celeres estimates Brazil Soybean planting at 27% complete vs. 14% last week
and 32% last year. They also estimate the Brazilian farmer has sold 30% of
the 2007/08 crop vs. 22% last year and an average for this time of year of
28%. Oil world estimates China is likely to further increase purchases of
oilseeds and vegetable oils in the near future following recent heavy buying
of Soybean Oil. They also say EU rapeseed plantings are likely to fall
following the EU’s decision to suspend its restrictions on set-aside land.
China’s consumer price index rose by 6.2% in September after August’s record
high of 6.5%. Ocean freight rates for dry commodities to major Asian routes
dropped 7% off their record high on Tuesday. Overnight Chinese Meal, Oil and
Soybeans closed higher. Malaysian palm oil traded at new record highs
overnight.

Early Opening Calls: Soybeans 10 to 15 cents higher, Oil .40 to .50 higher,
Meal $ 2.00 to $5.00 higher.

Top News

-- A slight raise in forecast for Brazil soybean crop to 63.1 mln mt vs
October's 63.0 mln mt forecast by private analyst Celeres, that would be a
7% rise from 2006/07 crop

-- Private analyst Celeres estimates the 07/08 Brazilian soybean crop is now
27% seeded

-- Starting Nov 9th, CME Group mini-size grain futures will trade from 6:30
p.m. to 6 a.m. and 9:30 a.m. to 1:45 p.m. Central time Sunday through
Friday.

-- Friday is USDA's Crop Production & World Ag Supply/Demand report.

-- Soybean harvest is 92% complete according to the USDA's Monday crop
progress report, that's ahead of last year's 90% and long term average of
90% complete.

-- Monday's Soybeans Export Inspections: 22.105 mln mt; expected 22.5 mln mt

-- Gov sources note South Korea has purchased 21k tons of soybeans from
China, shipment to arrive by Dec 21st - average price around $625/ton

-- Dalian Soybean May futures traded 300,000 contracts finishing 43 yuan/mt
higher at 4462 yuan/mt; active Soymeal futures were up 34 yuan/mt to 3319
yuan/mt; May Soyoil futures up sharply 96 yuan/mt to 9016 yuan/mt after
Malaysian palm oil futures hit new record high prices.

-- Malaysian Palm finished at record high of $885.17/mt, a rise of 1% from
prior day, as traders await price forecast from industry players at oilseed
outlook conference scheduled for Thursday

-- eCBOT Soybean Vol. 56,898; Pit Vol. 18,581; Open Interest Change: +1,755

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

-- Outside markets. Energy: Dec crude +$2.26/bbl to $96.21/bbl, setting new
high at 96.44 in morning electronic session, products follow suit ; Gold
$12.30 higher & Silver: up 37c to $15.16; US $ lower vs Euro, slightly
higher vs Yen basis Dec futures.

Cash Markets

--CIF Soybeans steady. 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/

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