Linn Group Morning Soybean Comment

CHICAGO - Dec 10/07 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Jan Beans surged higher on Friday closing 21 cents higher. Most of the
strength last week stemmed from meal demand. While oil held for the most
part Meal gained over $20.00 for the week, Oil lost 36 and Beans gained 39 ¾
cents for the week. Thoughts over the last several weeks was that Soybean
oil was following crude oil but with crude oil losing approximately $10.00
over the last 2 weeks and Soybean oil hovering near the highs traders say
support for vegoil should continue. Volume was very heavy on Friday
especially in Soybeans as the CBOT reported 182,978 Soybeans, 54,189 Soybean
Oil and 54,289 Meal traded. Funds were buyers of an estimated 9,000
Soybeans, 2,000 Oil and 5,000 meal.

Early Opening calls are higher. Brazil bean acreage estimates appear to be
slipping from pre-plant estimates, as reports of fewer acres planted than
early estimatest, more to corn, estimates bean crop 58.1 mmt down from 59.4,
corn 523 mmt, up from 51.4 mmt. The USDA supply and demand report due out
tomorrow at 7:30 CST. Drier-than-normal weather in Argentina and some
dryness in Brazil's Rio Grande do Sul crop region are expected to boost
prices, along with support from wheat. Friday's CFTC commitment of traders
report for futures and options combined showed that as of last Tuesday,
large speculators were long 154,936 soybeans, up 2,159 from the previous
week, and short 31,564 lots, down 1,276. Overnight Chinese Soybeans, Meal
and Oil closed lower.

Early Opening Calls: Soybeans 3 to 5 higher, Meal .50 to $ 1.00 higher and
Oil .05 to .10 higher.

Top News

-- December 2007/08 Brazil Soybean output estimate by Conab is 58.1 mln mt
compared to IBGE, Brazil's Census Bureau 58.2 mln mt estimate

-- USDA monthly supply/demand & ending stocks report Tuesday morning at 7:30
AM CT. Soybean ending stocks estimated 13 mln mt lower than prior report at
197 mln mt

-- The People's Bank of China said it is raising the reserve ratio to 14.5%
from 13.5% as of Dec 25.

-- Dalian May Soybean futures rose 61 yuan; Sept rose 72 yuan in overnight
trading; Soymeal May futures 80 higher to 3381 yuan/mt; Soyoil May futures
settled 46 yuan higher to 9452 yuan/mt

-- Malaysian Palm Board November production report showed a rise of 4.4% to
1.65 mln mt compared to prior month's output

-- Malaysian Palm Board palm oil stocks data shows 1.81 mln mt in storage
during November 16.2% higher than month ago

-- Intertek reported Malaysian Palm Oil exports were 449,543 mt in the Dec
1-10 period a drop of 1.2% from the same period in November

-- SGS reported Malaysian Palm Oil exports were at 432,315 mt in the Dec
1-10 period a slight rise of 0.6% from the same period in November

-- Malaysian Palm oil futures in Malaysia were little changed, Feb futures
-$0.60 lower to $864.63/mt

-- eCBOT Soybean Vol. 137,642; Pit Vol. 40,942; Open Interest Change: +3,916

-- Outside markets. Energy complex -.10 at $88.15; Gold & Silver +5.0 at
$799 & +.015 at $14; US $ up slightly vs. Yen and down vs. Euro

Cash Markets

            Bean Barge       Corn Barge        SRW Barge       HRW Track
Ill Riv Frt

Dec      +38/42 F           +31/34 H             +30/35 H         +??/75 Z
400

Jan       +48/52 F           +43/45 H              +40/55 H        +70/80 H
410

Feb       +38/42 H           +50/51 H              +50/60 H        +75/85 H
425

Truck                Beans   Corn     Wheat   Meal Hi-pro        Oil

Chicago                       -25 F     -4 H     -40 H

Toledo              -42 F     -12 H   -28 H

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

Nate Smith

Linn Group



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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