Linn Group Morning Soybean Comment

CHICAGO - Sep 1/06 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybean Update: Soybeans closed unchanged in the November contract and ¼
cent higher overnight.  Traders say that soybeans are still dealing with big
stocks and not a lot of demand, which was evident with the moderate volume
and narrow range for Thursday. Most analysts expect the USDA to raise its
average U.S. Soybean yield estimate in its September report to at lease 40
to 41 bpa. which is an increase over it's August report of 39.6 bpa. Most
traders indicate that soybeans should have a tough time gaining much
strength with harvest staring us in the face. Traders say expectations today
are for a mild short-covering bounce likely at the open amid oversold
technical signals and position-squaring ahead of the long holiday weekend.
Traders expectations are for gains to be limited by abundant stocks of soy.
Funds on Thursday bought 400 Soybeans, sold 900 meal and even in oil.
commercials bought 2,000 oil. Malaysian Palm oil futures closed firm.
Chinese soybeans meal and oil all closed higher.


Opening calls: ½ to 1 cent higher.

Soybean Update

eCBOT Overnight
Contract            Last                  Net Change       High
Low
ZSU6                543^4                1^2                   543^4
542^0
ZSX6                 556^0                0^2                   557^0
555^0
ZSF7                570^0                0^6                   570^0
568^2
ZSH7                582^0                2^0                   582^0
580^0
ZSK7                N/A                   0^0                   N/A
N/A
ZMV6                159.5                0.8                    159.5
159.5
ZMU6                N/A                   0.0                    N/A
N/A
ZMZ6                161.6                0.2                    162.3
161.4
ZLU6                 N/A                   0.00                  N/A
N/A
ZLV6                 25.32                0.00                  25.32
25.32
ZLZ6                 25.65                -0.09                 25.74
25.60

Early Opening Calls: mixed

Top News

-- Deliveries:  .  Oil  864 thru 8/31/06 no stopper. Soybeans  1,654  thru
8/31/06  ADM stopped  85.   Meal  81  thru  7/31/06  no stopper

-- Soybean spreads: RJ 800 SU/SX, ADM 600 SX/SU, ABN 300 SU/SX, Tenco 300
SU/SX


Cash Markets

-- CIF Soybeans  steady. Aug. +52 to +57, Sept. +52 to +57, LH Sept. +54 to
+60, Oct. +60 to +65, Nov. +65 to +68, Dec. +55 to +60, Jan. +62 to +68.

-- Processors:    Decatur  -7U   Danville -20X   Bloomington  -40X   Gibson
City  -35X

-- Board Crush Margins:         Sept. 80.90  up  .96   Oct.  71.91  up  1.32
Jan. 75.57 up  .74

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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