Linn Group Morning Soybean Comment

CHICAGO - Aug 11/06 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybean update: Soybeans on Thursday traded lower by 5 ¾ cents and an
additional ¾ cents lower overnight. Traders say volume was low and the trade
consisted mostly of position squaring before the release of today's USDA
august crop and supply/ demand report. The Agriculture Department estimated
the soybean crop at 2.928 bil. Bu.  which is lower than analysts projections
of 3.028 bil. bu. And a yield of 39.6 bu. per acre also lower than analyst
estimates of 40.8 bu per acre. State-run Taiwan Sugar Corp. passed on a
tender on Friday to buy 12,000 mt of U.S. soybeans, although negotiations
for another shipment of the same size continued, traders said. Fund activity
was quiet on Thursday in front of today's USDA report, funds sold 500
soybeans, 2,000 oil and 2,000 Meal. Chinese soybeans, meal and oil all
closed lower.

Opening call: 5 cents higher.

CBOT Overnight
Contract            Last      Net Change       High      Low
ZSU6                560^0    -1^2      560^6    557^4
ZSX6                 573^4    -0^6      574^0    570^2
ZSF7                586^0    -1^6      587^4    583^6
ZSH7                597^0    -0^6      598^0    595^0
ZMQ6               157.5    -0.4       157.9    157.5
ZMU6                158.0    -0.6       158.6    158.0
ZMV6                159.6    -0.4       160.1    159.5
ZLQ6                25.99    -0.11     25.99    25.99
ZLU6                 26.23    0.03      26.23    26.11
ZLV6                 26.40    -0.02     26.40    26.31


Top News
**US Soybean 06/07 Crop Prod: 2.928 bln bu.; est. 3.02; July Rpt 3.01
**US Aug. Soybean Yield: 39.6 bpa; est. 41.0 bpa; July Rpt 40.7 bpa
**US August Soybean 06/07 Carryout: 0.450 bln bu. ; est. 0.57; July Rpt
0.560
**US August Soyoil 06/07 Carryout: 2.374 bln lbs. ; July Rpt 2.479
**US August Soymeal 06/07 Carryout: 250,000 bln T ; July Rpt 250,000 T

**World 06/07 Soybeans Carryout: 49.97 mmt; July Rpt 53.01
**World 06/07 Soymeal Carryout: 5.16 mmt; July Rpt 5.59

**August Brazil 05/06 Soybean Output: 56.0 mmt; July Rpt 56.0
**August China 05/06 Soybean Output: 16.7 mmt; July Rpt 16.9
**August Argentina 05/06 Soybean Output: 41.3 mmt; July Rpt 41.3

**US Corn 06/07 Crop Prod: 10.976 bln bu.; est. 10.8; July Rpt 10.74
**US Aug. Corn Yield: 152.2 bpa; est. 150.0 bpa; July Rpt 149.0 bpa
**US All Wheat 06/07 Crop Prod: 1.801 bln bu.; est. 1.77; July Rpt 1.806
**US All Winter Wheat 06/07 Crop Prod: 1.283 bln bu.; est. 1.28; July Rpt
1.28

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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