Linn Group Morning Soybean Comment

CHICAGO - Aug 9/06 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybean Update: November Soybeans fell to a 4 months low on Tuesday down 5 ¾
cents taking out the lows established last November 28th. Traders say easing
concerns of crop stress due to recent weather improvements have been causing
the breakdown in prices. Soybean harvest has started early in Mississippi
and Louisiana due to drought conditions. These 2 states contribute less than
2% of the soybean crop. Farmers say harvest in this area is 7 to 10 days
earlier than normal. Mississippi farmers are reporting averaging 10 - 20
bpa. compared with normal 32 to 39 bpa. Export activity shows Taiwan's state
run sugar corp. is tendering for 24,000 mt. of U.S soybeans. Export demand
remains limited with many buyers still purchasing soybeans from Brazil.
Deliveries Tuesday on the August contract remain heavy at 1,343 with
scattered stoppers. Cash basis bids for soybeans in the Midwest on Tuesday
were steady to weak. Malaysian Palm oil futures closed higher. Chinese
soybeans closed higher. Funds on Tuesday sold 3,300 soybeans, 2,300 Meal and
even in oil.

eCBOT Overnight
Contract            Last      Net Change       High      Low
ZSU6                563^0    0^4                   563^4    562^4
ZSX6                 577^2    1^0                   579^0    576^0
ZSF7                590^0    0^6                   590^0    589^0
ZMU6                159.4    0.1                    159.4    159.0
ZMV6                161.2    0.7                    161.2    160.5
ZLU6                 26.19    0.00                  26.20    26.19
ZLV6                 26.60    0.20                  26.60    26.60

Early Opening Calls:

Top News
-- Chinese Dalian soybean futures settled higher overnight Wednesday,
however volume fell


Cash Markets

            Bn Barge           Corn Barge        SRW Barge       HRW Track
12Pro                      ILL RIV FRT
FAug    +32/36 X           +56/   U               +6/10 U          +70/  U
500
FSep    +40/44 X           +62/70 U              +18/24 U        +75/   U
525
Oct       +50/54 X           +58/60 Z              +25/28 Z        +73/81 Z
640

Truck                Beans   Corn                 Wheat   Meal Hi-pro
Oil
Chicago                       -30 X     -18 U              -58 U

Toledo              -17 U    -6 U                 -90 U
Dec ILL            -21 U    -14 U                             -6 Q
-200 Q

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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