Linn Group Morning Soybean Comment

CHICAGO - Dec 3/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybeans ended the week on Friday with a sell-off down 18 ¼ cents. For the
week the Jan contract ended down 23 cents. Several factors contributed to
the weaker trade traders say. These markets are heavily influenced lately by
Crude oil and the US dollar. Crude oil closed down $9.48 for the week and
the Dollar closed up 110 for the week reversing many of the gains in
Soybeans and soybean related products. Traders caution that this week the
grains in general will continue to closely watch Crude Oil and the US
dollar. Volume was heavy again on Friday with the CBOT reporting 133,062
Soybeans traded, 77, 879 Oil and 68,330 Meal. Funds were net sellers of an
estimated 6,000 contracts of Soybeans, 2,000 Oil and 3,000 Meal.

Early Opening calls are lower. Already the overnight markets are influencing
the trade today for Soybeans and soybean related products. Overnight trade
has front month Crude oil down .69 cents but the US dollar is down 21 cents.
Traders say demand has not diminished at all with the strong sales last
week. There is some concern however that China has built reserves of soyoil
and beans and could be quiet in the marketplace for the time being European
biodiesel makers are reported to lodge a formal complaint of unfair
subsidies for US biodiesel which they say hurt their businesses. Biodiesel
makers in Europe have come under pressure in 2007 as exports of cheap and
heavily subsidized US biodiesel. Under US law biodiesel can be subsidized up
to $264.00 per cubic meter, or about 200 Euros per mt. Then the blend can be
exported to Europe where it is eligible for European subsidies as well.
Overnight Chinese Soybean, Meal and Oil futures closed higher. Malaysian
Palm oil futures closed lower.

Early Opening Calls: Soybeans 5 to 7 cents lower, Meal $1.00 to $ 2.00 lower
Oil .20 to .40 lower.

Top News

-- The Commitment of Traders report with Options as of November 27 shows
Funds:

Soybeans Long 137,721 off 14,602

Meal long 65,828 off 2,980

Oil Long 55,065 of 2,507

-- CBOT Soyoil Deliveries: 2030

-- CBOT Soymeal Deliveries: 1378

-- Dalian Soybean Sept futures 18 yuan higher at 4271 yuan/mt. Soymeal
futures off 10 yuan to 3231 yuan/mt; Soyoil futures 76 yuan higher to 9312
yuan/mt.

-- Malaysian Palm oil futures fell overnight.

-- Intertek reports November exports of Malaysian palm oil fell to 1.289 mln
mt from Oct 1.318 mln mt.

-- SGS Services reported November Malaysian palm oil exports at 1.267 mln
mt, down 2.8% from Octobers volume.

-- eCBOT Soybean Vol. 97,455; Pit Vol. 31,156; Open Interest Change: -348

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

-- Outside markets: Energy complex: crude at $87.97/bbl off 73c, products
lower ; Gold $1.90 higher & Silver off 8c; US $ lower vs Euro & Yen.

Cash Markets

-- CIF Soybeans steady off 2. Dec. +40 to +43, Jan. +45 to +54, Feb. +38 to
+44, Mar. +38 to +42, Apr. +36 to +40, May +35 to +40, J/J +39 to +43.



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/

DISCLAIMER: Futures and options trading involve substantial risk. The valuation of futures and options may fluctuate, and as a result, clients may lose more then their original investment. In no event should the content of this website be construed as an express of an implied promise, guarantee or implication by of from the Linn Group, Inc. that you will profit or that losses can or will be limited in any manner whatsoever. Past performance is not necessarily indicative of future results. Information provided on this website is intended solely for informative purposes and is obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.

Information on this page is derived from third parties and is deemed to be reliable. STAT Communications Ltd. accepts no responsibility for errors, omissions or inaccuracies in any of the material presented on this web site. Opinions expressed on this web site are those of the respective individuals and/or institutions and do not represent the opinions of STAT Communications Ltd. or its management.