Soybeans closed 23 ¼ cents higher on Tuesday in the Jan Contract after gapping higher and never looked back. Soybeans made new contract highs and closed into new high territory for the Jan Contract. One trader described the commodity markets as being like a broken record, the same thing every day. The outside markets are the story with higher crude oil prices, gold and a lower dollar every day its tough to break these trends. Volume on Tuesday was heavy Soybeans traded 141,169, Meal 59,055 and Oil 61,646 contracts. Funds again added to their positions buying an estimated 7,500 Soybeans, 5,000 Bean Oil and 2,500 Meal.

Early opening calls are higher today. Argentina will raise export taxes on grains and soy products and will reopen the export registries for wheat and soy. The announcement came hours after the govt. announced the temporary closure of the soy export registry. Officials said they would reopen the registries as soon as the new tax increases took effect. Private analyst Linn Group released production estimates on Tuesday and show Total U.S. soybean production at 2.591 bil. bu, with an average yield of 41.26 bpa. This compares to the USDA October estimate of 2.6 bil. bu, with an average yield of 41.4 bpa. Traders say that while Fridays USDA production report is important the weakening dollar and rising crude oil markets are dominating commodity markets right now. Talk continues that China needs Soybeans and vegoil products and some hints of this may show up in FridaysUSDA report. The rally in Futures has caused increased farmer selling but interior bean basis remains discounted in many areas as farmers complain that $10.50 futures are still not translating into $10.00 cash beans, yet... Overnight Chinese Soybean, Meal and Oil futures closed higher. Malaysian Palm oil futures closed higher.

Early Opening Calls: soybeans 5 to 6c higher; soymeal $1.50 higher; soyoil 20-25pts higher

Top News

-- Private analyst Linn Group estimates national corn production at 13.266 bil bushels on a yield of 154.1 bpa, while national soybean production at 2.592 bil bushels on a yield of 41.26 bpa. The group estimates Iowa corn yields at 176 bpa, soybean yields at 51 bpa. Illinois corn yields at 178 bpa, soybean yields at 46 bpa & Nebraska corn yields at 170 bpa, soybean yields at 51 bpa.

-- Starting Nov 9th, CME Group mini-size grain futures will trade from 6:30 p.m. to 6 a.m. and 9:30 a.m. to 1:45 p.m. Central time Sunday through Friday.

-- Friday is USDA's Crop Production & World Ag Supply/Demand report.

-- Survey of analysts expect US Soybean production in Friday's USDA report at 2.606 Bln up from October's 2.598 & ending stocks of Soybeans at 213 mln bu.

-- CBOT Nov Soybean Deliveries: 98

-- Dalian Soybean futures rose 68 yuan/mt ot 4530 yuan/mt; soymeal active May futures rose 55 yuan/mt to 3374; soyoil futures sharply higher in all months, May rose 200 yuan/mt to 9216 yuan/mt.

-- Malaysian Palm oil futures sharply higher to a record high of 3,009 ringgit/mt or about $904/mt, and settled down at 3,000 ringgit.

-- Palm oil industry execs gather in Bali Thailand for price outlook conference.

-- eCBOT Soybean Vol. 103,888; Pit Vol. 33,010; Open Interest Change: +15,871

-- Weather: 6-10 Day Forecast: Above Normal Temps. Above Normal Precip. The Corn Belt looks dry today.

-- Outside markets. Energy: crude $1.06 higher at $97.77/bbl, hits high overnight at $98.62; Gold $17.00 higher & Silver 29c higher ; US $ sharply lower vs Euro & Yen.

Cash Markets

--CIF Soybeans off 1 -3. Nov. +32 to +36, Dec. +43 to +47, Jan. +50 to +55, Feb. +35 to +42, Mar. +37 to +43, Apr. +35 to +40, May +35 to +40, J/J +35 to +45.

Nathan T. Smith III

Linn Group

nsmith@linngroup.com

toll free: (877) 787-6278

local: (312) 896-2090

fax: (312) 896-2050

Reproduction or rebroadcast of any portion of this information is strictly prohibited without the written permission of the Linn group, inc. the information reflected herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Opinions expressed are subject to change without notice. this material and any view expressed herein are provided for informational purposes only and should not be construed in any way as an inducement to buy or sell commodity futures or options contracts. The Linn group and its officers, directors, employees and affiliates may take positions for their own accounts in contracts referred to herein. Trading futures involves risk of loss