Linn Group Morning Soybean Comment

CHICAGO - Aug 14/06 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybean Update: Soybeans plummeted to new 8 ½ month lows on Friday settling
6 cents lower.  Overnight Soybeans traded an additional 4 ½ cents lower.
Traders say favorable weather over the last 2 ½ weeks should make this crop
one of the best on record.  Traders shrugged off the somewhat bullish USDA
August crop production and supply demand numbers and took the market lower.
Traders say the report is not taking into account excellent weather for the
last 2 ½ weeks, which has been very good for crop development. Overnight
Taiwan bought 12,000 MT of U.S. Soybeans. The Commitment of traders report
with Options as of August 8th shows funds short 45,210 Soybeans which is an
increase of 10,076 contracts. Short 38,161 Soybean meal up 3,057 contracts
and long 65,146 soybean oil down 1,420. Deliveries on the August contract at
544 lots amid scattered stopping. Cash basis bids for soy in the Midwest
held steady on Friday and farmer sales were light.  Funds on Friday sold
5,500 Soybeans, 1,500 Meal and 12,000 Oil. Malaysian Palm oil futures closed
lower on Monday, dragged down by lower prices of soybean and crude oil,
traders say.

eCBOT Overnight
Contract            Last      Net Change       High      Low
ZSU6                550^4    -4^6                  551^6    549^4
ZSX6                 563^6    -4^4                  567^0    562^0
ZSF7                576^2    -5^6                  580^0    575^4
ZSH7                587^4    -3^6                  587^4    586^4
ZMU6                158.3    -0.7                   159.0    158.0
ZMV6                159.2    -1.0                   160.2    159.0
ZLU6                 25.26    -0.23                 25.79    25.26
ZLV6                 25.56    -0.15                 25.65    25.50

Early Opening Calls: 3 to 5 lower.

Top News
**NOPA Soybean Crush: +11.3 mln bu to 142.63 mln bu in July vs prior month
**NOPA July soyoil stocks +0.146 bln lbs to 2.688 bln lbs vs June
-- Exports: Israel bought 7,000 Meal for Oct/Nov.-- Talk China bought  2 to
4 cargoes of US Soybeans over the weekend.-- The Commitment of Traders
report with Options as of  August 8 shows Funds:
Corn   Long  195,118  off  7,801
Soybeans  Short  45,210  up  10,079
Wheat  Long  14,510  up  451
Meal  Short  38,161  up 3,057
Oil  Long  65,146  off  1,420
-- Funds hit the sell button in Corn Friday selling 30,000 contracts on the
day. Funds also Sold 5,500 Soybeans, 4,000 Wheat, 1,500 Meal, 12,000 Oil.
-- Gold trading lower this morning  $624.10  off   $9.40
-- Crude Oil trading lower $73.00  off   $1.35

Cash Markets
-- CIF Corn up 2 .  LH Aug. +64 to +??,  Sept. +69 to +74,LH  Sept. +69 to
+??, Oct. +62 to +68, Nov. +60 to +??, Dec. +62 to +65, Jan. +51 to +55. NS
Corn Sept. -18  FH Oct. -32  LH Oct. -28  Dec. +2  Evansville  CSX  -7

-- CIF Soybeans  up 1 - 2. FH Aug. +36 to +42, LH Aug. +39 to +45, Sept. +48
to +51, Oct. +58 to +59, Nov. +60 to +??, Dec. +52 to +58, Jan. +60 to +65.
Processors:    Decatur  -19U   Danville -28X   Bloomington  -45X   Gibson
City  -40X.

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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