Linn Group Morning Soybean Comment

CHICAGO - Nov 15/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybeans traded to 19 year highs on Wednesday closing 23 ¼ cents higher Meal
$ 8.00 higher and oil up 77 cents. Demand, especially from China is the fuel
to this rally traders say. Not only has China purchased three to 4 cargoes
of soybeans for Dec/Jan shipment in recent days but reports of additional
purchases of 44,300 mt of 2007/08 soyoil to unknown buyers (possibly China)
is adding to the fundamental strength. Monthly NOPA crush  data was slightly
bearish but traders are more focused on export demand than anything else.
Volume was heavy 157,522 soybeans, 54,229 Meal and 54,882 Oil traded. Funds
were active buyers buying an estimated 8,000 Soybeans, 4,000 Oil and 3,000
Meal.

Early calls are lower and the overnight market in beans was weaker ending
the evening session down 8 cents, bean oil and meal were weaker overnight as
well. Early weakness in crude oil and gold as dollar firms also to weigh on
prices. USDA reports private sale to China of 110,000 mt of US Soybeans for
2007/08 delivery.

Malaysian palm oil futures were up 1.4% overnight ending the session. Talk
of further purchases from China as they stockpile ahead of the Chinese Lunar
New year. Wet weather in Brazil's Rio Grande do Sul and Parana may disrupt
soy planting and force some replanting with satisfactory crop weather.
Traders say they will be keeping a close eye on outside markets for keys for
further rallies in Soybeans and soybean related products. Overnight Chinese
soybean futures close higher.

Early opening calls  beans 5 to 8 lower, Meal $2.00 to $3.00 lower and oil
.20 to .30 lower.

Top News

-- USDA weekly Thursday Export Sales data release, delayed until Friday Nov
16th, due to Veteran's Day holiday on Monday.

-- Dalian Soybean futures 34 yuan/mt higher at 4578 yuan/mt; Soymeal futures
20 higher at 3506 yuan/mt; May Soyoil futures 62 higher at 9666 yuan/mt.

-- Reluctance of US officials to embrace Brazilian ethanol imports has
curbed investment in ethanol storage facilities in the US by Brazilian
companies, acc. to industry sources

-- Conventional blending in ethanol jumped nearly +7% this week over last to
2.119 mil bbl/day, acc. to the EIA.  Conventional blending is the best
indicator of discretionary, or non-mandated, blending of ethanol into the
nation's gasoline supply.  This caps off the strongest 4 week period of
discretionary blending on record, +6.8% higher than the previous four weeks
(which was also the previous record).  The increase reflects the price
differential between gasoline and ethanol, and the potential for this spread
to increase demand

 -- eCBOT Soybean Vol. 113,371; Pit Vol. 36,715; Open Interest Change:
+2,458

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

-- Outside markets. Energy: 27c lower at $93.83/bbl, products lower ; Gold
$15 lower & Silver: 49c lower; US $ slightly higher vs Euro, slightly lower
vs Euro.

Cash Markets

--CIF Soybeans off 2 to 3. Nov. +25 to +32, Dec. +42 to +45, Jan. +47 to
+52, Feb. +37 to +44, 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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