Linn Group Morning Soybean Comment

CHICAGO - Aug 8/06 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybean Update: Soybean futures fell to 3 ½ month lows on Monday amid better
weather in the U.S. Midwest crop growing areas traders said. Going into
Friday's trade traders indicated they were concerned with hot dry forecasts
which moderated over the weekend as rain hit the dry regions, and forecast
for more rain this week turned the market lower. One trader said the crops
now have a chance to get even bigger especially soybeans. The USDA said on
Monday 15.5 Mil. bu. of soybeans were inspected for export last week, above
estimates for 6 to 12 mil. bu. Reuters reports this morning a consortium of
Israeli private buyers has issued a tender to buy 7,000 mt. of soy meal from
the U.S. or South America. Soybean Crop progress was released by the USDA
yesterday afternoon and shows no changes in any states. Soybeans were rated
53% good to excellent and 17% poor /very poor. Malaysian palm oil futures
closed 3% higher on Tuesday boosted by heavy fund buying traders said.
Traders say since Malaysia and Indonesia announced that they would pledge
40% of their outputs for biodiesel, daily volumes in this contract have
nearly doubled. Chinese Soybean, Meal and oil futures all closed lower.

eCBOT Overnight
Contract            Last      Net Change       High      Low
ZSQ6                558^0    -5^2      564^0    558^0
ZSU6                563^0    -4^2      567^4    562^4
ZSX6                 578^0    -4^0      581^4    576^2
ZSF7                589^6    -5^0      594^6    589^6
ZSH7                599^4    -4^4      600^0    599^0
ZMQ6               158.0    -0.9       159.0    158.0
ZMU6                159.3    -1.3       160.6    159.3
ZMV6                161.0    -0.9       162.5    161.0
ZLU6                 26.24    -0.07     26.35    26.15
ZLV6                 26.53    0.00      26.53    26.53

Early Opening Calls:

Top News
--Deliveries:  Soybeans 1,343  thru 8/7/06  Term stopped  49    Oil  75  no
stopper Meal  524 thru  8/7/06  Bunge stopped  390
--The USDA progress report shows Soybeans were rated 53% good to excellent
vs. 53% last week and 51% last year. Setting  pods
72% vs. 73% last year and 61% average.
--Allendale issued crop yield and production estimates:   Corn  149  yield
Corn production 11.112 bil.bu.   Soybean yield  42    production  3.086
bil.bu.
--Brazil grain analyst AgRural issued a report estimating Brazil's 2006/07
Soybean plantings at 20.78 mil. hectares off 6% from last years 22.21 mil.
hectares.  They issued a 20006/07 production esimate of 49.8 to 53.6 mmt.
--Funds on the sell side of all pits Monday Selling 10,500 Soybeans, 4,000
Corn, 1,000 Wheat, 4,200 Meal and 700 Oil.
Cash Markets
*       CIF Soybeans  off  1 to 3. FH Aug. +36 to +38, LH Aug. +38 to +??,
Sept. +42 to +47, Oct. +51 to +54, Nov. +56 to +60, Dec. +48 to +52, Jan.
+56 to +60.

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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