Linn Group Morning Soybean Comment

CHICAGO - Nov 14/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Jan Soybeans closed into new contract highs on Tuesday as brisk export
demand, especially from China spurred the market higher. Jan beans gained 10
cents in heavy trading despite sharply lower crude oil prices.  On Tuesday,
the U.S. Agriculture Department reported the sale of 107,000 mt. of U.S.
soybeans to China. A break in crude oil caused oil share to lean back to
Meal as Soybean oil closed down 23 and Meal gained $ 4.90.  Traders said
soybean futures were also supported by drier than normal weather in
north-eastern Brazil, the world's No. 2 producer and exporter of soybeans
after the United States. Funds bought an estimated 5,000 Soybeans, sold
1,500 Oil and 1,00 meal. Volume was moderate to heavy, Soybeans traded
118,272, Meal 55,882 and Oil 61,767 contracts. Funds bought an estimated
5,000 Soybean contracts, 3,000 meal and sold 3, 000 Oil.

Early calls are higher.  Today the NOPA crush was released showing Soy crush
at 134.974 mil. bu, below the average trade estimate for 156.2 mil. bu. NOPA
reported US soyoil stocks at 2.68 lbs. up from 2.561 bil in Sept.  Chinese
soybean demand continues to spur the bean market as the overnight market
indicates taking Jan beans into new contract highs and making new highs not
seen since 2004. Traders say China has booked at least three to four cargoes
of soybeans for Dec/Jan shipment since late last week. Britain's farm
ministry on Wednesday said it would cull poultry at four sites as
precautionary measures. The ministry confirmed deadly bird flu was found at
a poultry farm in Eastern England. The Baltic Freight index posted a record
high on Tuesday as raw material demand in Asia continues to surge. Overnight
Chinese Soybeans closed higher. Malaysian Palm oil futures closed higher.

Early Opening Calls: higher

Top News

*USDA reports private sale of 44,300 mt of US Soyoil to Unknown for 2007/08

**Oct NOPA Soybean Crush: 154.974 mln bu.; expected Oct: 156.2 mln; Sept
139.829

**Oct NOPA Soybean Meal Exports: 562,420 mt

**Oct NOPA Soybean Oil Stocks: 2.680 bln lbs

-- Latest USDA data shows 97% of the Soybean crop has been harvested up 5%
points from prior week & ahead of last year & 5 yr average pace of 94%
complete.

-- Private analyst Informa:  2008 Soybean acreage pegged at 68.1 mil acres,
-3.0 mil acres less than previous estimates, 4.4 mil acres more than '07

-- Private analyst Informa:  2008 Cotton acreage pegged at 10.0 mil acres,
+0.6 mil acres more than previous estimates, -0.85 mil acres less than '07

-- German oilseed trade group sees no further biodiesel production expansion
in the country, due to unfavorable tax legislation - further tax increase on
biodiesel producers expected to pass by the end of the year

-- EPA researchers looking at the possibility of E12 and E15 blending in
gasoline

-- Tuesday's USDA Soybeans Export Inspections: 24.927 mln mt; expected 26.0
mln mt

-- Tuesday's USDA Corn Export Inspections: 53.249 mln mt; expected 47.5 mln
mt

-- Tuesday's USDA Wheat Export Inspections: 23.138 mln mt; expected 30.5 mln
mt

-- CBOT Soybean Deliveries: 358 contracts.

-- Dalian Soybean futures higher 40 yuan/mt; soymeal up 63 yuan/mt & soyoil
sharply higher 154 yuan/mt higher as petroleum futures rebound.

-- Malaysian Palm Jan futures 11 ringgit lower, at 2913 ringgit/mt.

-- eCBOT Soybean Vol. 86,557; Pit Vol. 26,458; Open Interest Change: +1,826

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

-- Outside markets. Energy: crude up 1.30 at $92.47/bbl, products up too;
Gold & Silver both shoot higher up $17/oz & 44c/oz respectively; US $ lower
vs Euro, higher vs Yen.

Cash Markets

--CIF Soybeans steady off 5. Nov. +28 to +32, 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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