Linn Group Morning Soybean Comment

CHICAGO - Aug 1/06 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybean Update: Soybean Futures closed a little firmer on Monday up 1 ¾
cents due to worries about stress from extreme heat in the U.S. Some traders
say that they were surprised that the market did not close even stronger.
Traders say the heat keeps soybeans from falling and the rains keep soybeans
from rallying. High temperatures reached into the 100's in several areas
across the Midwest and intense heat is expected through Wednesday west of
the Mississippi river, but the Eastern Midwest may not get a break in the
heat until later this week. The USDA reported late Monday that 53% of the
soybean crop was rated good to excellent which is a decline of 1% from last
week, 6 states improved, 11 states declined. . Soybeans setting pods 53% vs.
52% last year and 41% average. Deliveries:  Soybeans  1,219  thru 7/31/06.
Japan and Mexico are reported active shoppers for U.S. Soybeans. CCC in for
8 tmt. soyoil for donation for export. Funds on Monday  Bought 500 Soybeans,
3,500 Oil and sold 3,000 Meal.  Chinese Soybeans, Meal closed lower and Oil
higher. Malaysian Palm oil futures closed higher.

COMM OF TRADERS: Updated to show the last CFTC report. Accumulated positions
include
options.
WHEAT CORN BEANS OIL MEAL
COT 07/25/06 13,200 196,300 -18,000 74,400 -19,600
L.G. Est 07/25/06 29,570 201,900 -15,300 65,000 -25,500
COT w/Opt 07/25/06 23,800 212,700 -14,700 68,200 -25,100
Fund Activity
26-Jul -6000 -6800 -1800 -2000 3200
27-Jul 3400 6700 -4000 -1600 -2800
28-Jul 1200 -3000 2100 6000 -500
31 Jly 4500 2500 500 3500 -3000
Est. Fund Position 26,900 212,100 -17,900 74,100 -28,200
record fund positions past 46 279 82 81 43
7 years (thou contracts) -56 -129 -56 -42 -33

CASH: Bn Barge Corn Barge SRW Barge HRW Track 12Pro ILL RIV FRT
Jly +51/55 Q +48/52 U -6/-2 U 510
Aug +54/58 U +52/55 U 0 /+2 U +60/70 U 525
Oct +46/50 X +52/56 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

To discuss this report further or for specific trade recommendations 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
www.linngroup.com/

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