Linn Group Morning Soybean Comment

CHICAGO - Dec 4/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybeans closed lower on Monday in the Jan contract down 1 ¼ cents but well
off the lows of the day. Traders say there was an active corn / soybean
spread activity Monday which caused early support for corn and weakness in
beans. The soybean complex has been trading sideways to lower in the last
couple of weeks in general and traders say this is due to a lack of buying
mainly by China. Indications are that China is done for the near term after
huge purchases over the last several weeks. Traders say the focus will now
center around South American weather, mainly problems with dryness in
Argentina. Weekly inspections were 22,564 mil. bu. down 32% from last week
and below analysts estimates of 30 to 40 mil bu.  Volume on Monday was good,
131,587 Soybeans, 64,456 Oil and 63,492 Meal traded. Funds were net sellers
of an estimated 1,000 Soybeans, 3,000 Oil and 1,000 Meal.

Early Opening calls are higher. A Consortium of Isreali private buyers
reportedly purchased 14,000 MT of US Soymeal to be shipped between March
15th. to April 10th. Reports show the US is benefiting from high ocean
shipping costs which are making Argentine supplies more expensive. Argentine
bids were received in the tender but the shipping costs were too expensive.
The Baltic Exchange Dry freight index posted a record high last month and
expanding economies of China and India are expected to keep freight rates
high. Planting of Brazil’s 2007/08 Soybean crop is 87% complete Private
analyst Celeres reported yesterday. This is up 72% from a week ago. Planting
was 89% this time last year. No.1 Soybean producing state Mato Grosso has
finished planting its crop reporting 100% planted vs. 98% at this time last
year. Brazil’s crop is expected to be smaller than previously reported but
higher than last year, up about 1%. Indonesian firm Agricultural firm PT
Charoen Pokphand Indonesia said it expects its Soymeal imports to rise
800,000 mt. in 2008 due to increasing poultry feed demand. They plan to
expand their poultry due to improving demand as they report the end of the
bird flu scare. Overnight Chinese Soybean Futures closed mixed, Mea and Oil
lower. Malaysian Palm oil futures closed lower.

Early Opening calls: Beans 2 to 4 cents higher, Meal $1.00 to $2.00 higher.
Oil .20 to .40 higher.

Top News

-- Crop forecaster, Celeres, latest estimate of 07/08 Brazil Soy crop is
62.27 mln mt down from November's 63.1 mln mt, they say slightly smaller
planted area due to late rains & delayed start is the cause for the revision

-- Dalian Soybean futures active Sept futures rose 30 yuan in overnight
trade to 4301 y/mt; May Soymeal futures fell 12 yuan to 3219 yuan/mt with
nearly 300,000 contracts trade, May soyoil futures rose 78 yuan to 9390 y/mt

-- Malaysian Palm Feb Malaysian palm oil futures were $11.07 lower to
$864.45/mt in overnight trade

-- eCBOT Soybean Vol. 96,069; Pit Vol. 31,548; Open Interest Change: -629

-- Weather: 6-10 Day Forecast: Normal to Below Temps. Normal to Above
Precip. Most of the Corn belt will be dry today except for some light snow
in the far north. Dry Wednesday.

-- Outside markets. Energy Energy -.31 at 89$; Gold & Silver: +8.6 at 797$ &
+.25 at 14.26$; US $ lower vs. Yen, Sharply lower vs. Euro

Cash Markets

-- CIF Soybeans steady . Dec. +40 to +43, Jan. +50 to +54, Feb. +38 to +44,
Mar. +36 to +44, 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.