Linn Group Morning Soybean Comment

CHICAGO - Nov 8/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybeans were led lower on Wednesday with a break off the highs in Crude
oil. December Crude oil futures had a wide $ 4.00 range for the day. Early
in the day crude oil was into new record high territory up $2.00 but broke
down at one point to $2.00 lower on the day. Argentina raised export tax
Corn 25% vs. 20%  Soybeans 35% vs. 27 ½ %  Products 32% vs. 24%  Wheat 28%
vs. 20% Should see new registrations start by Friday. Argentina's move to
raise export taxes on soybeans was supportive but any bullish impact was
already factored into prices because the move was expected, traders said.
Favorable weather continues in the U.S. Midwest  to complete the corn and
soy harvest. Crop remains favorable in most South American growing regions.
Midwest basis bids for soybeans were steady to firmer early Wednesday as soy
harvest sales have slowed while processor and exporter demand is steady.
Traders say Wednesdays volume was relatively heavy with 122,342 Soybeans,
62,532 Oil and 63,467 Meal. Funds were net sellers of an estimated 2,500
Soybeans, 1500 Meal and even in Oil.

Early Opening calls are slightly higher.  Weekly export sales figures
released today by the USDA show Soybeans 07/08 Export Sales at 614,500 mt;
08/09 vs analyst expectations 500k-700k, Meal Sales were 211.0k vs
expectations of 150k to 250k. Oil sales were 7.3k vs expectations of 5k to
15k. Brazil Govt. Issued their first estimate for 2007/08 Soybean production
at 59.3 mmt. up from last year’s crop of 58.2 mmt. China the worlds top
consumer of Veg Oil is paying record prices for South American Soyoil in an
attempt to curb inflation. China’s domestic vegoil pirces hit all-time highs
this week and industry sources said they planned to buy 400,000 mt. or more.
As has been noted the last several weeks the rise in commodity prices has
been due much in part to a declining Dollar. In many analysts view the
decline in the US dollar is at or near a bottom at least for now. This
should stabilize the Agricultural market prices at least for the near term.
Friday is USDA's Crop Production & World Ag Supply/Demand report. Overnight
Chinese Soybeans, Meal and oil closed lower. Malaysian Palm oil futures
closed higher.

Early Opening Calls: Soybeans 2 to 4 higher, Oil .10 to .20 higher, Meal .50
higher.

Top News

**USDA Soybeans 07/08 Export Sales Net: 614,500 mt; 08/09 Net: none mt;
expected 500k-700k

**USDA Soybean Meal 07/08 Export Sales Net: 211,000 mt; 08/09 Export Sales
Net: 300 mt; expected 125-250k

**USDA Soybean Oil 07/08 Export Sales Net: 7,300 mt; 08/09 Export Sales Net:
none mt; expected 5k-10k

-- IBGE estimates production of Brazil soybeans at 59.32 mln mt in 07/08
crop year & estimate plantings of soybeans rose 2% vs last year.

-- Argentine export duties on take effect immediately says country's
economics minister, duties on soybeans rose to 35%, up 7.5%. Corn rose 5
points to 25%, while wheat rose to 28% from 20%.

-- 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.-- Indian trade group estimates the country will produce 26 to 27 million
tons of oilseeds, which is an increase of around +15% from last year -
lion's share to come from soybean gains

-- UN FAO:  Increased biodiesel output to drive increasing demand for
soybean oil; however, sugar values expected to remain low due to strong
production

-- 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.

-- Dalian Soybean futures were off 19 yuan/mt to 4511 yuan/mt; soymeal
futures down 22 yuan/mt to 3352 yuan/mt; soyoil futures +38 yuan/mt at
settlement of 9254 yuan/mt basis the May futures

-- eCBOT Soybean Vol. 92,174; Pit Vol. 24,150; Open Interest Change: +1,896

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

-- Outside markets: Energy complex: crude 38 c higher at $96.75, products
higher too ; Gold $1.50 to $835/oz & Silver up 16.5c to $15.49/oz; US $
slightly higher vs Yen & Euro basis the Dec futures.

Cash Markets

--CIF Soybeans off 1 -5. Nov. +26 to +35, Dec. +42 to +45, Jan. +45 to +53,
Feb. +35 to +42, Mar. +37 to +41, Apr. +35 to +42, May +35 to +42, J/J +35
to +44.



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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