Linn Group Morning Soybean Comment

CHICAGO - Nov 12/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybeans rallied after the release of the USDA crop production report
released early Friday morning. The January Soybean contract ended Fridays
session 14 ¾ cents higher. Traders said all the strength was in the soy
complex. China’ activity in the beans and the firmer crude oil market kept
the market firm. The USDA confirmed that China bought 115,000 MT of 2007/08
Soybeans within the past day and there were more rumors that China bought
55,000 mt. of U.S. Soybean oil this week. The China purchase of Soybean Oil
came on the heels of reports from Asian traders that China bought up to
200,000 Mt. of South American soyoil this season. Volume was heavy with an
estimated 116,318 Soybeans, 53,894 Soybean Oil and 47,310 Meal traded. Funds
were buyers of an estimated 5,000 Soybeans, 3,000 Oil and 2,000 Meal.

Today’s early opening calls are lower. Outside market influences will be
important today traders say. With Crude Oil down $2.00, Gold down $30.00,
Silver down 82 cents and the US Dollar up 52 the commodity markets are
subject to Liquidation. Discussions of an overall risk reduction in all
markets given the high prices of commodities have been hitting newswires.
Good crop weather in South American Soybean growing areas are somewhat
bearish as well. In October China imported 2.85 Mil MT of Soybeans, a rise
of 26.9% over last year. Imports in October rose 51.1% from September as
lower duties encouraged more imports despite higher freight costs. The
Commitment of Traders report released Friday show Funds long 145,685 up
9579, Oil long 65,940 up 2,994, Meal long 72,317 up 4068. Index funds are
long 173,868 up 2,200. Overnight Chinese Soybean, Meal and Oil futures
closed higher. Malaysian Palm futures lower.

Early Opening Calls: 8 to 10c lower; Soymeal $3 lower; Soyoil 25 lower

Top News

-- Dalian May Soybean futures 22 yuan/mt higher at 4513 yuan/mt; Soymeal May
futures 41 yuan/mt higher at 3408 yuan/mt with 900k; Soyoil futures +30
yuan/mt to 9404 yuan basis the May contract

-- Malaysian Palm Jan futures settled 71 ringgit lower to 2919 ringgit as
early Nov export data weaker than expected

-- eCBOT Soybean Vol. 25,401; Pit Vol. 24,316; Open Interest Change: +2,435

-- Weather: 6-10 Day Forecast: Normal to Below Temps. Normal to Below
Precip. The Corn Belt will see scattered showers and thunderstorms today and
Tuesday.

-- Outside markets. Energy: lower $1.43 at $94.91/bbl, products lower; Dec
Gold sharply lower off $25 & Silver: off 64c to $14.90; US $ sharply higher
vs Euro, sharply lower vs Yen.

Cash Markets

--CIF Soybeans off 1 to 4. Nov. +25 to +33, Dec. +45 to +48, Jan. +50 to
+55, Feb. +38 to +42, Mar. +38 to +41, Apr. +35 to +42, May +35 to +42, J/J
+35 to +42.



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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