Weakening dollar and surging crude oil prices supported the soybean complex on Thursday ending the session 17 ¼ cents higher in the Jan contract. The US dollar hit all time lows against the Euro which makes our products more expensive overall is helping to support grain prices. Crude oil prices are also into new all time highs as the November contract flirts with $90.00. Strong export sales numbers yesterday added to the rally as funds were all on the buy side buying an estimated 7,000 soybeans, 2,000 meal and 3,000 oil. Volume was heavy, 147,919 soybeans, 45,921 soybean oil and 32,401 meal traded.

Early opening calls are 1 to 2 cents better for soybeans. The dollar continues to languish this morning down again against all the major currencies, putting underlying support into all commodity markets including the bean complex. Freight rates for hauling grains from the US to Asia hit new record highs this week but sales of US grains and oilseeds remain strong. Traders say Spillover support from calls for a sharply higher open in wheat to lend support to soybeans in addition to rain-delayed harvest in the U.S. Midwest. Also, some traders cited news from USDA's chief economist on Thursday forecasting an increase in U.S. soy acreage next year as possibly putting some pressure on soybean futures. Overnight Chinese Soybean, meal and oil futures closed higher. Malaysian palm oil futures closed higher.

Early Opening Calls: Soybeans 1 to 2 higher, Oil steady to .05 higher. Meal .50 higher

Top News

-- USDA's Keith Collins believes US corn acreage will decline in the coming year to 87 million, cotton to 10 million. USDA's Keith Collins also pegs US wheat plantings at 64 million acres, soybeans at 70 million - both increases from the previous year

-- Planting estimates for corn, soybeans & wheat expected to be released by Informa Friday morning.

-- Analyst Cerealpar: Brazil will produce 61.3 mil tons of soybeans in the coming year

-- In a continued effort by Indian gov't to keep prices inline, gov't official says agencies are likely to import 86,000 mt of veg oils in the near future

-- French gov't grain office pegs falling grain exports to Spain for 07/08 at 3.3 mln mt, down from the 4.9 mln mt in 06/07

-- October cattle on feed report will be released on Friday, early sample of analysts see On-Feed at 94-97% of year ago numbers, while Marketings during Sept were in a range of 94-98 & placement of animals on feedlots ranged at 102-112% of year ago figures.

-- Russian authorities ban the import of poultry products from 28 US facilities, acc. to Russian news agencies. Poultry industry group says 17 US poultry plants & 5 storage warehouses have been barred from exporting product to Russia, the ban is set to begin on Nov 1, but industry group says Russian gov't did not give explanation for reason of ban. The other 11 facilities were pork product producers.

-- The latest numbers in the Senate Farm Bill include $4.2 billion for food stamps, $3.7 billion on land stewardship, and $1.3 billion in biofuel advancement/funding

-- The latest debate in the Senate Farm Bill surrounds the "average crop revenue" program, focusing aid on actual farm revenue rather than price levels

-- Blending of ethanol into conventional gasoline increased +2.6% in the latest EIA statistics to 1.94 mil bbl/day on winter blending, price differentials

-- Dalian Soybean futures rose in active trade. May futures up 53 yuan/mt, while Sept 08 rose 64 yuan/mt on good volume. Both May soymeal & soyoil futures rose substantially, up 49 yuan/mt & 108 yuan/mt respectively.

-- Astra Agro Friday auctioned off 1,500 mt of crude palm oil

-- eCBOT Vol. 107,155; Pit Vol. 36,896; Open Interest Change: +4,884

-- Weather: 6-10 Day Forecast: Normal to Below Temps. Normal to Below Precip. The Corn Belt will see showers and thunderstorms ending in the eastern areas today.

-- Outside markets. Energy: Lead month Nov crude 20c higher makes intraday high of $90.45, products mixed heating oil higher, gas lower ; Gold & Silver: both higher; US $ up slightly vs Euro, down slightly vs Yen

Cash Markets

--CIF Soybeans up 1 to 2 . Oct. +20 to +30 LH Oct. +22 to +30, Nov. +38 to +45, Dec. +36 to +44, Jan. +44 to +48, Feb. +25 to +38, Mar. +35 to

Nathan T. Smith III

Linn Group

nsmith@linngroup.com

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