Linn Group Morning Soybean Comment

CHICAGO - Aug 2/06 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybean update:  Soybean prices were weaker down 6 cents on Tuesday amid
easing concerns about easing weather conditions and large commercial
deliveries against the August contract. Overnight Soybeans rebounded 3 ¾
cents. Traders say many were expecting the weekly crop progress numbers to
be worse than the 53% good to excellent reported late Monday adding to the
weakness in yesterday's trade. The 6 to 10 day forecast calls for above
normal temperatures and below normal precipitation. U.S. soybeans have been
under stress since late last week as much of the Midwest has been in the
upper 90's and 100's. Crop Scout Cordonnier lowered his soybean yield
yesterday to 41.0 bu per acre. Soybean basis values were mostly steady,
supported by slow movement but export demand was thin traders said.
Overnight Taiwan Passed on a tender for 60,000 mt. for U.S or Brazil
soybeans for September delivery.  Oil world said it has cut its estimate of
global 2006/07 soybean production to 221 mmt. down 2 mmt from its previous
forecast. They also report that Global 2006/07 consumption will be above
production at 223.70 mmt. Funds on Tuesday sold 1,000 soybeans, 7,500 meal
and 1,000 Oil. Malaysian Palm oil futures rose on Wednesday. Chinese Soybean
futures closed

Opening calls 2 to 3 higher.

CIF Soybeans  up 2 - 4 . FH Aug. +36 to +38, LH Aug. +35 to +37, Sept. +40
to +44,

Oct. +46 to +49, Nov. +53 to +58, Dec. +46 to +52, Jan. +52 to +57.

Processors:    Decatur  -21U   Danville ?30X   Bloomington  -40X   Gibson
City  -40X

Board Crush Margins:        Aug.  72.75  up  .61   Sept. 72.39 off  .13
Oct.  64.16  off  .71
To discuss this report 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
www.linngroup.com/

DISCLAIMER: Futures and options trading involve substantial risk. The valuation of futures and options may fluctuate, and as a result, clients may lose more then their original investment. In no event should the content of this website be construed as an express of an implied promise, guarantee or implication by of from the Linn Group, Inc. that you will profit or that losses can or will be limited in any manner whatsoever. Past performance is not necessarily indicative of future results. Information provided on this website is intended solely for informative purposes and is obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.

Information on this page is derived from third parties and is deemed to be reliable. STAT Communications Ltd. accepts no responsibility for errors, omissions or inaccuracies in any of the material presented on this web site. Opinions expressed on this web site are those of the respective individuals and/or institutions and do not represent the opinions of STAT Communications Ltd. or its management.