Linn Group Morning Soybean Comment

CHICAGO - Nov 9/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Jan Beans closed 2 ¾ cents higher. The market was volatile in the last hour
of trade breaking from the 1042 area down to the session lows of 1035 in 15
minutes. Then a corn led rally took beans back to higher territory into the
close.  Soybean export sales fell 17 percent to 614,500 mt. (old crop only),
in line with expectations for 450,000 mt. to 650,000 mt. Traders expressed
concern on Thursday after the Brazilian agriculture ministry trimmed its
estimate of the country's soybean output due to a delayed start to planting
this season's crop. The grain industry was hoping that South America would
make up for the smaller 2007 U.S. soybean harvest as farmers seeded more
acres to corn this past spring at the expense of soybeans. Volume was Funds
bought an estimated 2,500 beans, 2,500 Oil and sold 1500 meal.

Early Opening Calls are higher. The USDA released their November Crop
production report today. Soybean production is forecast at 2.59 billion
bushels, down slightly from the October forecast and down 19 percent from
last year's record high.  Based on November 1 conditions, yields are
expected to average 41.3 bushels per acre, down 0.1 bushel from last month
and down 1.4 bushels from last year.  Compared with last month, yields are
forecast higher in Indiana, Michigan, Texas, and most of the Mid-Atlantic
region as producers are realizing higher yields than expected. A survey of
analysts expectations for US Soybean production was pegged at 2.606 Bln. &
ending stocks of Soybeans at 213 mln. bu. Area for harvest in the U.S. is
forecast at 62.8 million acres, unchanged from last month but down 16
percent from 2006. The Labor Dept reported October import prices climbed at
the steepest rate in nearly 1 ½ years up 1.8%. Traders report China has
purchased 50,000 to 80,000 mt of US Soyoil this week and up to 200,000 mt.
of South American Soyoil. USDA early Friday said U.S. exporters sold 115,000
mt. of U.S. soy to China for 2007/08 delivery.  Overnight Chinese Soybean
futures closed lower, Meal and Oil higher. Malaysian Palm oil futures closed
lower

Post Report Opening Calls: Soybeans 5 to 7c higher, Meal

Top News
**US Nov Soybean 07/08 Crop Prod: 2.594 bln bu.; est. 2.61 bln bu. Oct Rpt
2.598
**US Nov Soybean 07/08 Yield: 41.3 bu/ac; est. 41.5 bu/ac; Oct Rpt 41.4
bu/ac
**US Nov Soybean 07/08 Carryout: .210 bln bu. ; est. 0.21; Oct Rpt 0.215
**US Nov Soyoil 07/08 Carryout: 2.017 bln lbs. ; Oct Rpt 1.930
**US Nov Soymeal 07/08 Carryout: 300k T ; Oct Rpt 300,000

**World 07/08 Soybeans Carryout: 49.35 mmt; Oct Rpt 50.75
**World 07/08 Soymeal Carryout: 5.71 mmt; Oct Rpt 5.78
**World 07/08 Soyoil Carryout: 2.60 mmt; Oct Rpt 2.48

**Nov China 07/08 Soybean Output:  14.3 mmt; Oct Rpt 14.6
**Nov Argentina 07/08 Soybean Output:  47.0 mmt; Oct Rpt 47.0
**Nov Brazil 07/08 Soybean Output:  62.0 mmt; Oct Rpt 62.0

-- Private analysts raise the possibility of Chinese soybean output not
exceeding 12-13 mil tons, significantly lower than the last USDA estimate
-- Rising consumption levels could push Indian edible oil imports up around
6% each year
-- Palm oil trade group sees the potential of $1,000/ton palm oil futures in
the event of a natural disaster affecting production
-- USDA reported Thursday a private sale of 120,000 mt of US Soybeans sold
to China for 07/08 delivery
-- UkrAgroConsult believes Ukranian production of rapeseed could double in
2008, leading to further increases in exports. October Ukrainian Rapeseed
exports totalled 193,800, an increase of +12.1% from September's number,
acc. to ProAgro data
-- CBOT Nov Soybean Deliveries: 110
-- Dalian Soybean futures fell overnight down 20 yuan/mt lower at 4491
yuan/mt; active May Soymeal futures rose 15 yuan/mt to 3367 yuan/mt with 1/2
mil contracts traded, soyoil sharply higher +120 yuan/mt to 9374 yuan/mt
-- Malaysian Palm futures settled just below 3,000 ringgit at 2,990 ringgit
in Jan contract.
-- Cargo analysts report Nov 1-10 Malyasian Palm Oil export figures on
Monday
-- eCBOT Soybean Vol. 65,686; Pit Vol. 23,248; Open Interest Change: +4,218
-- Weather: 6-10 Day Forecast: Normal to Below Temps. Normal to Below
Precip. The Corn Belt looks dry today and Saturday.
-- Outside markets. Energy: crude off 42c at $95.04/bbl; products follow
lower ; Gold & Silver: both lower; US $ down slightly vs Euro Dec futures,
off 94 vs Yen Dec futures

Cash Markets
--CIF Soybeans steady up 5. Nov. +32 to +35, Dec. +45 to +45, Jan. +50 to
+55, Feb. +37 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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