The beans closed 7½ cents lower after setting 19 year higher overnight, but selling pressure and the outside markets pressured beans to close down near session lows. Traders said long liquidation ahead of the US thanksgiving holiday are also present. The soybean market is showing strength on the continued buying of soybeans by the Chinese. Strength in Oil pressured the oil meal spreads. Volume was Heavy in beans and the products on Monday 122,894 Soybeans, 69,502 Meal and 69,549 Oil traded. Funds sold an estimated 3,000 soybeans, 2,000 meal and bought 1,000 Oil.

Early Opening calls are lower. News out of china that a selloff on the Dalian exchange put Soybeans, Oil and Meal down limit. Traders say that expectations that Beijing will extend duty reductions on imports and adopt tax relief measures to curb inflation are having an impact. Prices have been falling in China since Friday after the govt. purchased 500,000 mt. of Soybeans and more than 400,000 mt. of Soyoil for reserves, aimed at curbing inflation and pressure cooking oil prices there. Malaysian Palm oil futures followed suit falling more than 1%. Excessive rains in southern Brazil were slowing soybean planting in Rio Grande do Sul and Parana. USDA reports private sale of 20,000 mt of US Soyoil to China for the 2007/08 MY.

Early Opening Calls: Beans 3 to 5 higher, Meal .50 to $1.00 higher. Oil .10 to .20 higher.

Top News

-- Traders & analysts expecting Chinese gov't to extend the time of its low soybean import duty & also lower its Soybean oil tax.

-- Dalian Soybean futures sharply lower, May off 139 yuan/mt, Sept off 149 yuan/mt; Soymeal futures off 115 yuan/mt to 3,411; Soyoil futures down 246 yuan/mt to 9130 yuan/mt.

-- Malaysian Palm settled 20 ringgit ($5.94) lower to 2930 ringgit ($872)

-- Intertek said Nov 1-20 palm oil exports were 5.8% higher to 925,104 mt from the same 20 day period in Oct.

-- SGS said Nov 1-20 palm oil exports were 9.2% higher to 9550,983 mt from the same 20 day period in Oct.

-- Commodity minister of Malaysia expects 2008 output to rise 300,000 mt to 16.8 mln mt from 16.5 mln in 2007

-- Monday's USDA Soybean Inspections: 23.566 mln bu.

-- eCBOT Soybean Vol. 94,950; Pit Vol. 21,363; Open Interest Change: +5,678

-- Weather: 6-10 Day Forecast: Below Normal Temps. Below Normal Precip. Most of the Corn Belt will be dry today. Showers and some snow start late tonight and moves west to east into early Thursday.

-- Outside markets. Energy: crude $1.00 higher; Gold $13.00 higher & Silver: 32c higher; US $ lower vs Yen & makes new record low vs Euro in cash market

Cash Markets

-- CIF Soybeans firmer. LH Nov. +39 to +42, Dec. +41 to +48, Jan. +48 to +55, Feb. +39 to +42, Mar. +37 to +41, Apr. +35 to +40, May +35 to +40, J/J +35 to +40.

Nathan T. Smith III

Linn Group

nsmith@linngroup.com

toll free: (877) 787-6278

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fax: (312) 896-2050

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