Linn Group Morning Soybean Comment

CHICAGO - Sep 8/06 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybean Update: Soybeans closed firmer on Thursday up 3 ¼ cents but still
put in a lower low. Traders say Thursdays rally was caused by strength in
corn and technical buying in soybeans and triggering of buy stops. Traders
say that although the funds are short we will get occasional boosts of short
covering and position squaring in front of Tuesdays USDA's September Crop
production report. Average range of estimated for USDA crop report next
Tuesday is a Soybean Yield of 41.9 bpa. and production of 3.093 bil bu.
Weekly export sales released today shows sales of 559,800 mt at the upper
range of estimated of 400,000 to 600,000 mt. U.S. Midwest spot basis bids
were firm on Thursday as farmers are unwilling to move their remaining
old-crop with prices hovering near LDP rates there is no incentive to sell.
Funds on Thurdsay sold 2,500 Oil, bought 500 meal and ended even in
Soybeans. Chinese Soybean, meal and oil futures closed higher. Malaysian
Palm oil futures closed mixed to firm.

eCBOT Overnight
Contract            Last      Net Change       High      Low
ZU6                  538^4    0^0                   537^6    537^4
ZX6                   550^0    0^0                   552^4    549^0
ZF7                   563^2    0^0                   565^0    562^4
ZH7                  575^0    0^0                   576^6    575^0
ZK7                  584^4    -1^0                  584^4    584^2
ZMU6                159.6    0.0                    159.8    159.8
ZMV6                160.5    0.0                    161.1    160.7
ZMZ6                163.3    0.1                    164.3    163.0
ZLU6                 24.26    0.00                  24.32    24.25
ZLV6                 24.42    0.00                  24.50    24.36
ZLZ6                 24.83    0.00                  24.92    24.75

Early Opening Calls: 1 to 2 lower

Top News

**USDA Soybeans 06/07 Export Sales Net: 559,800 mt

**USDA Soybean Meal 06/07 Export Sales Net: 57,500 mt

**USDA Soybean Oil 06/07 Export Sales Net: 8,600 mt

-- Exports: South Korea bought  52,000 mt.  Indian  Soymeal for Feb/Mar.

--  Average estimates for USDA crop report Tuesday. Corn yield 152.5,
production 10.996; Soybeans yield 41.9, production  3.093. Ending stocks:
Corn  2005/06  2.046   06/07  1.221   Soybeans  2005/06  503    06/07  566

-- Funds were early sellers Thursday but turned buyers late. At 11:00 Funds
were net sellers of 4,000 Corn but ended the day net buyers of 2,000. Funds
Sold 2,500 Oil. Bought 500 Meal. Ended even in Wheat and Soybeans.

Deliveries:

Soybeans  1,723  no stopper
Oil  252  Term stopped 67
Meal  79  no stopper

-- Soybean spreads: Tenco 800 SX7/SX, ABN 500 SX/SX7, 500 SU/SX, Bunge 400
SX/SX7.

Cash Markets

-- CIF Soybeans up 2 to 3.  Sept. +54 to +58, LH Sept. +57 to +50, Oct. +59
to +62, Nov. +67 to +73, Dec. +56 to +62, Jan. +60 to +67.
-- Processors: Decatur  -15; Danville -15; Bloomington  -30; Gibson City
-20
-- Board Crush Margins: Sept. 82.00  up  .65; Oct.  72.44  up  .13; Jan.
75.61  off  1.31

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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