Linn Group Morning Soybean Comment

CHICAGO - Jul 28/06 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybean Update: The soybean market was under pressure all day closing down 7
¾ cents, its lowest close in a month and coming within a penny of its June
26th lows of 591. Overnight November soybeans are up 3 ½ cents.  Traders say
factors contributing to the sell off are burdensome stocks, disappointing
crush report yesterday, disappointing weekly export sales and beneficial
rains for dry areas. Volume was moderate to heavy and funds sold roughly
3,000 soybeans, 2,000 meal and 1,000 Oil. Trades say there is a general
feeling that heat will be a problem going forward as the 6 to 10 day
forecast calls for above normal temperatures and for Normal to above normal
precip. Meal basis has weakened sharply in all markets this week. Japan and
Mexico are active for U.S. beans and So. Korea and Taiwan expected back nest
week for beans and meal.  Overnight Malaysian Palm oil futures closed
significantly higher surging to 2 years highs fuelled by heavy fund buying
and strong fundamentals. Chinese Soybeans and meal closed lower.

Taiwan passed on 60 TMT opt origin beans for Sep.
Japan and Mex active in US beans.
Latin meal export interest in combo with corn.
Israel passed on meal offers.
CCC for 22 TMT meal for Vietnam and Phil combined.
US domestic meal basis very weak.
Malay palm oil futures up 11 with cash olein still strong at $455 for Sep.
China domestic vegoil prices extremely strong--- for the third day in a row.

CASH: Bn Barge Corn Barge SRW Barge HRW Track 12Pro ILL RIV FRT
Jly +48/51 Q +45/47 U -6/-2 U +62/68 U 490
Aug +48/51 U +47/48 U -1/+2 U +65/70 U 550
Oct +45/48 X +51/54 Z +20/25 Z +75/81 Z 640
Truck Beans Corn Wheat Meal Hi-pro Oil
Chicago -10 Q -14 U -52 U
Toledo -13 Q -14 U -95 U
Dec ILL -12 Q -8 U -6 Q -150 N


COMM OF TRADERS: Updated to show the last CFTC report. Accumulated positions
include options.

WHEAT CORN BEANS OIL MEAL

COT 07/18/06 6,800 197,000 -7,400 80,800 -17,100
L.G. Est 07/18/06 14,200 181,200 -14,000 65,900 -22,900
COT w/Opt 07/18/06 19,400 211,800 -6,300 73,200 -23,300

Fund Activity

19-Jul 0 -5700 -4200 -7700 -2700
20-Jul 9000 -1800 -3000 4700 -1000
21-Jul 3000 -9500 -5200 -1000 -2000
24 Jly -1700 4000 2900 0 1600
25 Jly -130 3100 500 -4200 1900
26 Jly -6000 -6800 -1800 3200 -2000
27 Jly 3400 6700 -4000 -1600 -2800
Est. Fund Position 26,970 201,800 -21,100 66,600 -30,300
record fund positions past 46 279 82 81 43
7 years (thou contracts) -56 -129 -56 -42 -33

For specific trade ideas please contact me directly. Don't forget to go to
go to wwwCropscout.com to view specific crop pictures and regional crop
progress.

Nathan T. Smith III
Linn Group
nsmith@linngroup.com
toll free: (877) 787-6278
local: (312) 896-2090
fax: (312) 896-2050
www.linngroup.com/

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