Linn Group Morning Soybean Comment

CHICAGO - Sep 5/06 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybean Update: Soybeans on Friday closed weaker by 4 ¼ cents on light
holiday trade. Overnight trade has soybeans another penny lower. Traders say
harvest pressure and overall weakness due to large supplies and good
finishing weather are causing the continued weakness in Soybeans. Private
analysts are beginning to release their estimates for U.S soybean crop ahead
of the USDA sep. 12th crop report. FCStone estimated soybean production at
42.8 bpa and a yield of 3.166 bil. Bu. Allendale estimates Soybean crop
production of 42.05 bpa and production of 3.109 bil. Bu. So. Korea passed on
25 tmt. Non-GMO edible beans for Sept. China much more active around all
bean origins.   Brazil gain analyst Celeres lowered their estimate for
2006/07 soybean production to 55.1 mmt. down from their previous estimate of
56.0 mmt. Some analysts In Brazil are forecasting a crop as low as 51 to 53
mmt. The Commitment of Traders report with Options as of August 29th shows
funds short 45,247 Soybeans off 892, Meal short 43,553 up 307 and oil Long
22,040, off 15,061. Funds on Friday sold 500 Soybeans, 1,000 Oil and bought
300 Meal. - Malaysian crude palm oil futures closed lower in thin trade on
Tuesday, hit by a decline in the prices of crude oil and lack of fresh
fundamentals.


Early Call: 1 to 2 lower.

Top News

-- Deliveries:
Soybeans 2,190  thru 9/1/06 no stopper
Oil  951 thru  9/1/06 no stopper
Meal  7 thru 7/31/06 no stopper
-- Soybeans spreads: Bunge 1,000 SU/SX, 500 SX/SF, Tenco 800 SU/SX, Term 500
SX/SU.

 Cash Markets
-- CIF Soybeans  steady off 1 .  Sept. +50 to +56, LH Sept. +52 to +60, Oct.
+58 to +60, Nov. +65 to +69, Dec. +55 to +60, Jan. +62 to +68.

-- Processors:    Decatur  -7U   Danville -18X   Bloomington  -40X   Gibson
City  -35X
-- Board Crush Margins:         Sept. 80.80  off   .10   Oct.  72.53  up
.62   Jan. 76.44 up  .87

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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