Linn Group Morning Soybean Comment

CHICAGO - Nov 7/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybeans closed 23 ¼ cents higher on Tuesday in the Jan Contract after
gapping higher and never looked back. Soybeans made new contract highs and
closed into new high territory for the Jan Contract. One trader described
the commodity markets as being like a broken record, the same thing every
day. The outside markets are the story with higher crude oil prices, gold
and a lower dollar every day its tough to break these trends. Volume on
Tuesday was heavy Soybeans traded 141,169, Meal 59,055 and Oil 61,646
contracts. Funds again added to their positions buying an estimated 7,500
Soybeans, 5,000 Bean Oil and 2,500 Meal.

Early opening calls are higher today. Argentina will raise export taxes on
grains and soy products and will reopen the export registries for wheat and
soy. The announcement came hours after the govt. announced the temporary
closure of the soy export registry. Officials said they would reopen the
registries as soon as the new tax increases took effect. Private analyst
Linn Group released production estimates on Tuesday and show Total U.S.
soybean production at 2.591 bil. bu, with an average yield of 41.26 bpa.
This compares to the USDA October estimate of 2.6 bil. bu, with an average
yield of 41.4 bpa. Traders say that while Fridays USDA production report is
important the weakening dollar and rising crude oil markets are dominating
commodity markets right now. Talk continues that China needs Soybeans and
vegoil products and some hints of this may show up in FridaysUSDA report.
The rally in Futures has caused increased farmer selling but interior bean
basis remains discounted in many areas as farmers complain that $10.50
futures are still not translating into $10.00 cash beans, yet… Overnight
Chinese Soybean, Meal and Oil futures closed higher. Malaysian Palm oil
futures closed higher.

Early Opening Calls: soybeans 5 to 6c higher; soymeal $1.50 higher; soyoil
20-25pts higher

Top News

-- Private analyst Linn Group estimates national corn production at 13.266
bil bushels on a yield of 154.1 bpa, while national soybean production at
2.592 bil bushels on a yield of 41.26 bpa. The group estimates Iowa corn
yields at 176 bpa, soybean yields at 51 bpa. Illinois corn yields at 178
bpa, soybean yields at 46 bpa & Nebraska corn yields at 170 bpa, soybean
yields at 51 bpa.

-- 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.

-- Survey of analysts expect US Soybean production in Friday's USDA report
at 2.606 Bln up from October's 2.598 & ending stocks of Soybeans at 213 mln
bu.

-- CBOT Nov Soybean Deliveries: 98

-- Dalian Soybean futures rose 68 yuan/mt ot 4530 yuan/mt; soymeal active
May futures rose 55 yuan/mt to 3374; soyoil futures sharply higher in all
months, May rose 200 yuan/mt to 9216 yuan/mt.

-- Malaysian Palm oil futures sharply higher to a record high of 3,009
ringgit/mt or about $904/mt, and settled down at 3,000 ringgit.

-- Palm oil industry execs gather in Bali Thailand for price outlook
conference.

-- eCBOT Soybean Vol. 103,888; Pit Vol. 33,010; Open Interest Change:
+15,871

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

-- Outside markets. Energy: crude $1.06 higher at $97.77/bbl, hits high
overnight at $98.62; Gold $17.00 higher & Silver 29c higher ; US $ sharply
lower vs Euro & Yen.

Cash Markets

--CIF Soybeans off 1 -3. Nov. +32 to +36, Dec. +43 to +47, Jan. +50 to +55,
Feb. +35 to +42, Mar. +37 to +43, Apr. +35 to +40, May +35 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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