Linn Group Morning Soybean Comment

CHICAGO - Sep 6/06 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybean Update: Soybeans traded 2 ¾ cents higher on Tuesday, followed by an
additional rally of 3 cents overnight. Soybeans at one point during the
session traded as high as 11 ½ cents higher. Traders say the rally was
fueled by a technical rebound. Traders say strength in soybean meal
triggered buy stops in the October contrast and that supported both meal and
soybeans. After the close the weekly crop condition report was issued and
shows soybeans rated 59% good to excellent vs. 59% last week and 54% last
year. Soybeans dropping leaves is 13% vs. 13% last year and 12% average.
There was another big round of deliveries for soybeans 2,190 through 9/5/06
which underscores that cash soybeans are trading at a significant discount
to futures. USDA reported on Tuesday that 10.9 mil. bu. of soybeans was
inspected for export last week, which was within trade estimates for 5 mil.
bu. to 11 mil. bu. Funds on Tuesday bought 5,000 Soybeans, 4,500 Meal and
sold 3,000 Oil. Chinese Soybean, Meal and Oil futures closed higher.
Malaysian Palm oil futures closed mixed.

eCBOT Overnight
Contract           Last                  Net Change      High
Low
ZSU6               540^6              -0^4                 540^6
540^6
ZSX6               557^2              3^0                  558^0
553^6
ZSF7               570^4              3^2                  570^4
567^0
ZSH7               581^4              3^0                  582^0
580^2
ZSK7               N/A                 0^0                  N/A
N/A
ZMV6              162.8               1.4                   162.8
161.3
ZMU6              161.2               0.9                   161.2
160.3
ZMZ6              165.7               1.1                   165.7
164.1
ZLU6               N/A                 0.00                 N/A
N/A
ZLV6               24.65               -0.03                24.65
24.65
ZLZ6               25.10               0.00                 25.22
25.06

Early Opening Calls: ½ to 1 cent higher.

Top News
-- Informa estimated US Soybean Production estimated at 3.108 bln bu;
soybean yields at 42.0 bpa - according to sources familiar with report
-- AgResource issued a Corn production estimate of 10.876 bil.bu. down 110
mil.bu. from their July estimate. In their S&D estimates they forecast  a
2006/07  ending stocks of   1,012 bil.bu. vs. the USDA's estimate of 1,232
bil.bu.
-- Deliveries: Corn  2,712  thru 9/5/06  no stopper    Soybeans 2,224 thru
9/5/06  no stopper Wheat  284  thru 9/1/06  ADM stopped 7   Oil  616  thru
9/5/06 term stopped 3
-- Crop scout Cordonnier raised his Soybean yield ½ bu. to 42.0 bu. per acre
with production estimated at 3.09 bil.bu.
-- Brazil grain analyst Agrocunsult issue a estimate for 2006/07 Soybean
production at 52.8 mmt. up from their previous estimate of 49.0 mmt.  Seems
like most of the estimates by private analyst for the 2006/07 Soybean crop
are running 51 to 54 mmt.
-- Soybean spreads: ABN 600 SU/SX, JPM 400 SX/SF, Rand 100 SX/SN.

Cash Markets
--CIF Soybeans  steady off 1 .  Sept. +48 to +56, LH Sept. +54 to +60, Oct.
+59 to +62, Nov. +67 to +74, Dec. +56 to +60, Jan. +62 to +68.

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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