Linn Group Morning Soybean Comment

CHICAGO - Jul 27/06 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Overnight Soybean Commentary: Weakness in Soybeans on Wednesday caused by
improving weather took November soybeans 4 1/4 cents lower. Overnight
November soybeans lost an additional 3 ½ cents. This Brings November
Soybeans to the gap created from Mondays opening. The 6 to 10 day forecast
calls for above normal temperatures and normal precipitation. Today the
Census bureau released its June crush numbers at 137.44 mil. bu. below
analysts estimates of 127.5 to 138.0 mil. bu. Weekly export sales released
today show net sales of 198,700 mt. which were 16% below the previous week
and 30% below the 4 week average. Analysts estimates for export sales were
200,000 to 400,00. The USDA announced Louisiana found it's first case of
Soybean rust on a sentinel plot, which potentially indicates a spread of
this disease from Georgia and Florida. Reminder that August Soybeans first
notice day is Monday July 31st.  Chinese soybeans and meal futures closed
lower, oil higher. Malaysian Palm oil futures closed higher on Thursday
because of strong demand and fears that dry weather in July meant lower
output.

eCBOT Overnight
Contract            Last      Net Change       High      Low
ZSQ6                587^0    1^6                   588^0    585^0
ZSU6                593^0    -0^2                  596^2    592^2
ZSX6                 607^4    0^4                   609^6    605^6
ZSF7                619^6    2^0                   620^2    619^0
ZSH7                N/A

Early Opening Calls:
1 to 2 lower


**** Funds a little more active Wednesday.   Funds sold 6,800 Corn, 6,000
Wheat, 1,800 Soybeans, 2,000 Oil.  Bought 3,200 Meal
**** Soybean spreads: Fimat 800 SU/SQ, ADM 600 SX/SQ, PB 1,500 SQ/SU, Tenco
600 SQ/SX

Cash Markets
Cash market steady to weaker.  CIF Corn steady Aug. +46 to +48, Sept. +52 to
+60.
River house bids mixed  STL. up 1 at -10, Morris Il. River off 1 at -32.
Decatur  off 1 at -8.

To discuss this 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

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