Linn Group Morning Soybean Comment

CHICAGO - Dec 7/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Jan beans closed down ¾ of a cent basically unchanged after a two sided
trade.  Beans were expected to open significantly lower after closing 10
lower at the end of the night session, but they seemed find strength before
the opening.  Talk before the opening seemed to revolve around traders
wanting to buy beans 10-15 lower, but the market firmed on the open.
Traders say beans can’t find any aggressive sellers and they are being
supported by excellent export sales, concerns about weather in So. America,
and supportive technicals. The beans seem to be lacking needed bullish news
to continue up to the highs from earlier in the week, but also can’t find
anybody willing to step out and sell the market.  Export sales were 993,500
which was above the estimate of 500,000 to 800,000 tones.  Brazil reported
89% of the soybean crop planted, so now traders will be paying much more
attention to the weather as it becomes more and more important, but it is
still early of the critical yield determining stage. Volume was heavy
165,398 Soybeans, 69,054 Soybean oil and 56,169 Meal traded. Funds were net
sellers of an estimated 1,000 Soybeans, 1,000 Meal and 1,000 Oil on
Thursday.

Early Opening calls are higher. Reports from an Official Chinese think today
show Chinese Soya and grain traders have a bearish outlook for their markets
as the government strives to curb rising food prices. Brazil's first
registered case of Asian soybean rust of the 2007/08 crop turned up in Aral
Moreira in Mato Grosso do Sul state near Paraguay, the government's crop
research agency Embrapa said on Thursday. The Brazilian government has begun
a moratorium on winter month (roughly June-August) planting in some
center-west states where the fungus is a serious problem. The moratorium
helps break the cycle of the fungus surviving the drier winter months into
the next season. Overnight Chinese Soybean and Meal futures closed higher
and Soybean Oil settled Sharply higher. Malaysian Palm Oil futures closed
higher.

Early Opening Calls: Soybeans 5 to 8 higher, Meal $2.00 to $ 3.00 higher,
Oil .20 to .30 higher.

Top News.

-- 23.36 mln mt of oilseed is expected to be produced in the EU during
2007/08, up from the prior forecast of 22.7 mln mt by industry group
Coceral. Rapeseed production is expected at 17.76 mln mt up from last year's
15.96 mln mt

-- Dalian Sept Soybean futures settled 61 yuan higher to 4350 yuan/mt in
overnight trade, next active month, May finished 71 yuan higher; May Soymeal
finished 27 yuan higher; May Soyoil sharply higher up 114 yuan to 9406
yuan/mt

-- Malaysian Palm oil futures rose $5.97/mt to $864/mt in overnight trade

-- eCBOT Soybean Vol. 127,010; Pit Vol. 34,163; Open Interest Change: -1,738

-- Outside markets. Energy -.05 at $90.15; Gold & Silver: -.05 at $800 &
steady at $14.45; US $ up slightly vs. Yen and down slightly vs. Euro

Cash Markets

            Bean Barge       Corn Barge        SRW Barge       HRW Track
Ill Riv Frt

Dec      +40/45 F           +30/32 H             +30/35 H         +??/75 Z
390

Jan       +51/55 F           +42/45 H              +40/55 H        +70/80 H
400

Feb       +40/44 H           +49/51 H              +50/60 H        +75/85 H
425

Truck                Beans   Corn     Wheat   Meal Hi-pro        Oil

Chicago                       -25 F     -4 H     -35 H

Toledo              -46 F     -14 H   -28 H

Dec ILL            -20 F     -6 H                  -8 F                -225
F



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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