Linn Group Morning Soybean Comment

CHICAGO - Nov 13/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

An overall commodity sell-off on Monday took Soybeans lower closing the Jan
contract 9 ¾ cents lower. The market opened 16 cents lower and fell another
nickel in early action. Soon after the market stabilized then crept higher
through most the day to settle down 9 ¾ cents, yet 11¾ cents off the early
lows. Gold was sharply lower, down almost $30.00, Silver Down almost .80
cents, a reversal in the Yen/Euro spreads and a lower crude oil market all
pointed to fund liquidation traders say. Volume was lower than recent
sessions trading 106,489 Soybeans, 54,732 Oil and 42,331 Meal. Funds were
net sellers of an estimated 5,000 Soybeans, 4,000 Oil and 2,000.

Early Opening calls are higher. Soybeans hit new three year contract highs
overnight and talk of continued Chinese demand for Soybeans and Soybean oil
supportive. Oil World editor Thomas Mielke said on Monday that World prices
for oilseeds like Soybean, Sunflower and Palm Oil will rise in coming years.
They forecast US 2007/08 Soybean Oil exports to be 850,000 mt. up from its
previous estimate of 720,000 mt. If this is reached or exceeded traders say
this would result in an even sharper reduction in US soybean oil stocks.
They cite population growth and demand for cooking oils going up and
ambitious governmental policies on biofuels squeezing supplies. Talk
overnight that China has booked 1.5 to 2.0 mmt of US soybeans for Jan
shipment. Informa will issue planting estimates for Corn Soybeans and Wheat
this morning. Overnight Chinese Soybeans closed mixed. Malaysian palm oil
futures were steady.

Early Opening Calls: Soybeans 10 to 12c higher; Soymeal $4 higher; Soyoil 15
to 20 pts higher

Top News

-- 10:30 AM Informa expected to release November acreage estimate for corn
soybean & wheat.

-- Weekly Grain Export Inspections released Tuesday delayed due to Vet's
Holiday

-- Weekly Crop Progress released Tuesday delayed due to Vet's Holiday

-- USDA pegs farm-gate prices at $6.10/bu for wheat, $3.50 for corn, and $9
for soybeans - setting new records

-- Argentina's Ag Ministry estimates corn planting is 76.4% complete, +6.4%
ahead of last year's pace at this time

-- October Chinese soybean imports over +25% higher than Oct of '06 - 2.85
mil tons total - setting a new record for the month of October. Chinese corn
exports increase dramatically over the same time last year; currently 210k
tons through October, acc. to customs data.

-- Dalian Soybean futures off 9 yuan/mt at 4504 for the May contract. May
Soymeal futures turned higher up 15 yuan/mt to 3423, while soybean oil
futures were 46 yuan/mt higher at 9450.

-- Malaysian Jan Palm oil futures rose 5 ringgit to 2924 after yesterday's
sell of on lower export data & weak crude oil.

-- eCBOT Soybean Vol. 79,080; Pit Vol. 22,210; Open Interest Change: -2,438

-- Weather: 6-10 Day Forecast: Normal to Above Temps. Normal to Below
Precip. Showers will exit the eastern Corn Belt later today

-- Outside markets: Energy complex: crude off $1 to $93.62; Gold & Silver
both slightly higher; US $ lower vs Euro, slightly higher vs Yen.

Cash Markets

--CIF Soybeans up 1 to 6. Nov. +?? to +35, Dec. +45 to +50, Jan. +50 to +55,
Feb. +38 to +42, Mar. +36 to +42, 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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