Linn Group Morning Soybean Comment

CHICAGO - Aug 16/06 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybean Update: Soybeans ended unchanged in the November contract yesterday
in a lackluster trade spending the day in a 4 ¼ cent range. The overnight
session ended with November soybeans 2 ½ cents higher.  One trader said that
more than anything the market quit going down yesterday. Traders indicate
that the market is technically oversold and is due a rally. Increasing fund
shorts in soybeans and record fund shorts in meal could indicate the market
is getting overdone to the downside as well. Some traders say the bean yield
and crop size are growing above the USDA's august estimate. Exports were
quiet overnight but traders said
there was talk China was seeking soybeans. South Korea is expected for meal
this week. Fund trade has slowed in recent days with funds on Tuesday
selling 1,000 soybeans, 1,100 meal and bought 1,100 oil. Chinese Soybean,
Meal and oil futures closed higher. Malaysian Palm oil futures closed lower
overnight.


eCBOT Overnight
Contract            Last      Net Change       High      Low
ZSU6                558^6    2^2                   559^2    555^0
ZSX6                 571^6    2^4                   572^6    568^2
ZSF7                583^6    1^6                   585^0    581^0
ZSH7                594^4    3^0                   594^4    594^4
ZMU6                161.1    1.2                    161.1    160.0
ZMZ6                165.0    0.9                    165.0    164.1
ZLU6                 25.35    -0.03                 25.42    25.29
ZLZ6                 25.94    0.02                  26.00    25.88

Early Opening Calls: 1 to 2 higher.

Top News
-- Chinese Soybean, Meal, Oil and Corn futures closed higher.
-- Talk that China continues to shop US Soybeans.

Cash Markets
-- CIF Corn 3 to 5 .  LH Aug. +70 to +??,  Sept. +74 to +78,LH  Sept. +77 to
+80, Oct. +65 to +68, Nov. +66 to +??, Dec. +66 to +69, Jan. +52 to +55. NS
Corn  Sept. -15 FH Oct. -30  LH Oct. -25  Jan/July -2  Evansville  CSX  -7

-CIF Soybeans  steady.  LH Aug. +39 to +46, Sept. +50 to +55, Oct. +58 to
+60, Nov. +62 to +65, Dec. +53 to +60, Jan. +60 to +65.

COMM OF TRADERS: Updated to show the last CFTC report. Accumulated positions
include options.

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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