Linn Group Morning Soybean Comment

CHICAGO - Aug 10/06 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybean Update: Soybeans closed 3 ¾ cents higher on Wednesday after falling
20 cents over the last 2 sessions and 66 cents in the last month. Traders
say the market remains technically and fundamentally weak even with the
higher close on Wednesday. Volume was low and meal traded into a new lows.
Traders say the strength in the soybean complex remains in Soybean oil.
Traders also say weather is getting a lot of attention for the recent lower
trade but they note that technical traders have been liquidating long
positions for the last several trading sessions. Weekly export sales
released today shows sales of 274,600 MT that is 55 percent over the
previous week and 18 percent above the prior 4-week average. This is  in
line with analysts estimates of 200,000 to 400,000 mt. USDA will issue its
crop report on Friday and expectations are for quiet trade in front of that
report. Cash basis bids for soybeans were mostly steady and farmer selling
is slow. Funds on Wednesday bought 1,500 Oil,  1,600 Soybeans. Sold 200
Meal. Chinese Soybean, Meal and Corn futures closed lower, Oil higher.
Malaysian Palm oil futures closed lower overnight

eCBOT Overnight
Contract            Last      Net Change       High      Low
ZSQ6                562^0    0^0                   562^0    562^0
ZSU6                564^6    -1^6                  567^4    564^4
ZSX6                 578^4    -1^4                  581^2    578^0
ZSF7                592^0    -1^2                  594^0    592^0
ZSH7                603^2    0^0                   603^2    603^2
ZMQ6               158.6    0.0                    158.6    158.6
ZMU6                159.3    -0.5                   160.0    159.3
ZMV6                160.8    0.0                    161.8    160.8
ZLU6                 26.47    -0.05                 26.53    26.42
ZLV6                 26.73    0.00                  26.73    26.73

Early Opening Calls: 1 to 2 cents lower


Top News
-- Deliveries:  Soybeans  1,174  thru 8/9/06  Term stopped  78   Oil  110
thru  8/4/06 no stopper   Meal  69  thru 8/9/06   Bunge stopped  69
-- The Brazil Soybean basis continues to firm making US Soybeans more
competitive. In the last week the FOB Paranagua basis has jumped 25 to 30
cents. This is helping fuel the talk that China has bought 4 to 5 cargoes of
US Soybeans off the PNW this week.
-- Brazil grain analyst Agroconsult issued a estimate for 2006/07 Soybean
plantings of  18.97 mil. hectares off 14 ½ % from last year 22.19 mil.
hectares.
-- Soybean spreads: IA 500 SF/SX, 200 SN/SX7, ABN 400 SQ/SU, UBS 400 SU/SX.
-- Corn spreads: Ocon 5,000 CZ/CU, Fimat 4,000 CZ/CU, Fimat 1,500 CU/CZ,
Caly 1,000 CZ/CU


Cash Markets
-- CIF Corn up 2 to 3.  Aug. +60 to +63, LH Aug. +62 to +65,  Sept. +65 to
+72, LH  Sept. +68 to +70, Oct. +60 to +62, Nov. +58 to +63, Dec. +60 to
+65, Jan. +48 to +55. NS Corn       Sept. -18      FH Oct. -32  LH Oct. -28
Dec. +2      Evansville  CSX  -7

-- CIF Soybeans steady up 2. FH Aug. +36 to +38, LH Aug. +38 to +??, Sept.
+46 to +47, Oct. +54 to +??, Nov. +58 to +62, Dec. +50 to +54, 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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