Linn Group Morning Soybean Comment

CHICAGO - Aug 3/06 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybean Update: Soybeans on Wednesday closed up 7 ½ cents at 601 ½ cents but
well off its highs of 608. Traders say the market was due for a technical
correction as it has been hovering near a one month low and funds hold a net
short position in soybeans. Weather continues to be a factor for Soybeans
and the 6 - 10 day Forecast calls for above normal temperatures and below
normal precipitation.  Yesterday FC stone released its Soybean crop
production estimates, reporting 2006 U.S. Soybean production estimate at
3.056 bil. bu, and 41.3 bba. above the USDA's current estimate for 3.01 bil.
Bu.  Friday Informa economics will release its yield and production
estimates. The USDA released its weekly export sales estimates totaling
270,200 mt. within estimates for 150,000 to 400,000 mt. Meal sales totaled
110,200 mt within estimates for 80,000 to 135,000 and oil sales totaled 100
mt. below estimates for 1,000 to 6,000 mt. Cash basis late on Wednesday in
the Midwest steady to firm amid
scattered farmer selling.  Funds were aggressive buyers in Soybeans
Wednesday buying 7,000 contracts, 4,500 Oil and 900 meal. Malaysian Palm oil
futures closed mixed.

Opening call 2 to 3 cents lower.


**** Barge freight steady to higher  STL.  480 - 500   IL. River  500 - 510
Ohio  470 - 480
**** BN rail freight steady     Aug +75   Sept.  +225  Oct. +450

CASH: Bn Barge Corn Barge SRW Barge HRW Track 12Pro ILL RIV FRT
FAug +34/38 X +49/51 U +0/5 U +70/ U 500
FSep +41/43 X +56/58 U +18/25 U +75/ U 525
Oct +47/50 X +54/56 Z +22/27 Z +75/81 Z 640
Truck Beans Corn Wheat Meal Hi-pro Oil
Chicago -35 X -15 U -55 U
Toledo -20 U -9 U -90 U
Dec ILL -21 U -8 U -6 Q -200 Q

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
1-Aug -1000 4600 -1000 -1000 -2500
2-Aug 1600 2400 7000 4500 900
Est. Fund Position 27,500 219,100 -11,900 77,600 -29,800
record fund positions past 46 279 82 81 43
7 years (thou contracts) -56 -129 -56 -42 -33

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/

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