Soybeans closed lower down 5 1/2 cents on Thursday for the first time in the last 5 sessions. The market did manage to make new contract highs and fresh 34 year highs before heading lower. Traders said soybeans were supported by a big number for soy sales in the U.S. Agriculture Department's weekly export sales report. Also boosting prices was a report that 100,000 mt. of soybeans were sold to South Korea. Volume on Thursday was very heavy in Soybeans and Soybean Oil. 216,962 Soybeans, 99,163 Oil and 63,816 Meal traded. Funds Bought and estimated 1,000 Meal, sold 2,000 Beans and 3,000 Oil.

Early opening calls are higher. Today NOPA crush was released today at 146.748 mil bu. below the analysts estimates range of 148 to 153 mil bu. The U.S. Senate late on Thursday approved a broad energy bill which calls for an increase in renewable fuels such as soyoil-based biodiesel to boost prices. In early trade Rapeseed/Canola is trading higher, boosted by a stronger soy complex and weaker Canadian currency. Today Informa Economics will release a new 2008/09 Planting estimate this morning. A survey conducted by China National Grain and Oils Information Center a govt. think tank said that Soytraders expect the market to turn bullish in coming days. The center estimated more than 9 mil mt. of soybeans would arrive in China from December to February. Overnight Malaysian Palm oil futures closed slightly higher but floods in Malaysia have left more than 23,000 homeless and more rain is expected. Traders say Palm Oil is getting some support from the problems of heavy floods but cash sales are slowed due to the floods. Heavier-than-expected showers in Argentina's crop region seen buoying production prospects and favorable crop weather continues in Brazil. Overnight Chinese Soybean, Meal and Oil futures closed lower. Malaysian palm oil futures closed slightly higher.

Early Opening Calls: 3-5 better; Soymeal $1 higher; Soyoil 10c higher

Top News

**NOPA November US Soybean Crush: 146.748 mln bu; expected 151.5 mln bu; Oct 154.97 mln bu

**NOPA November US Soybean Oil Stocks: 2.689 bln lbs; Oct 2.679 bln lbs

-- US farm industry survey shows 2008 Soybean plantings are expected to rise 9.0% in 2008 to 69.5 mln acres from 2007, acc. to Farm Futures magazine. However the latest forecast is down from 72.6 mln acres estimated back in August. 2007 saw 63.7 mln acres planted

-- US congressional members of both houses extend 2002 farm legislation until March 2008 in an effort to ensure no gap in funding as the current legislation lingers in committee

-- The InterContinental Exchange - US board of directors approves March 2008 as transition date for its futures contracts to fully electronic trading, acc. to press release issued by the exchange. This will mean futures will be exclusively available on the electronic platform starting March 2, 2008 & trading in the pit will cease in February. Options on futures will still be pit traded. The ICE-US trades various physical commodities such as FCOJ, cotton, sugar, coffee, cocoa, index & currency futures.

-- Chinese Soybean Sep futures lower -32 to 4506 yuan/mt on Dalian exchange; Soymeal May contract off -8 to 3,469 yuan/mt, while Sept off 14 yuan to 3363 yuan/mt; Soyoil futures were slightly higher, May +4

-- Feb Malaysian palm oil futures traded $1.80 higher to $883/mt, traders expect good export data for FH Dec when figures are reported next week

-- eCBOT Soybean Vol. 155,018; Pit Vol. 57,587; Open Interest Change: +2,914

-- Weather: 6-10 Day Forecast: Above Normal Temps. Normal to Above Precip. The Corn Belt looks mostly dry today. Saturday will see snow with the heaviest amounts favoring central and southern areas. Sunday into Tuesday dry. Temps normal to below.

-- Outside markets. Energy steady at $92.25; Gold & Silver: -5.5 at $793.5 & -.102 at $13.95; US $ is slightly up vs. Yen and up vs. Euro

Cash Markets

-- CIF Soybeans steady off 4. Dec. +28 to +38, Jan. +36 to +40, Feb. +32 to +40, Mar. +35 to +40, Apr. +31 to +37, May +34 to +40, J/J +39 to +43.

Nate Smith

SMS Brokerage

nsmith@jerrygulke.com

toll free: (877) 787-6278

local: (312) 896-2090

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