Linn Group Morning Soybean Comment

CHICAGO - Sep 12/06 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybean Update: Weakness continues in the soybean complex on Monday as
November soybeans closed 3 ½ cents lower and an additional ¾ cents lower
overnight. The market gapped lower on the open, falling to contract lows in
all months through July 2007, except November 2006. Traders say volume was
light and trade was very slow. Soybean basis offers were steady supported by
slow farmer selling and traders also said that soybeans for October shipment
are still cheaper in Brazil and Argentina but this will change as we begin
active harvest. Wide prices between cash and futures encouraged another
round of September futures deliveries of 1,317 contracts Monday morning.
After the close yesterday the weekly crop progress report was released,
showing soybeans were rated 60% good to excellent vs. 59% last week and 54%
last year. Dropping leaves 27% vs. 34% last year and 27% average. Today the
USDA released it's September crop production report this moorning showing
Soybean production of 3.093 bil. bu. and a yield of 41.8 bpa. This is in
line with analysts expectations and widely viewed as neutral to bearish.
Funds on Monday sold 2,800 soybeans, 500 meal and 3,300 Oil. Chinese soybean
and meal futures closed lower, oil higher. Malaysian palm oil futures closed
mixed to weaker.


eCBOT Overnight
Contract           Last      Net Change      High     Low
ZSU6               532^0  -5^0                 534^2  533^2
ZSX6               544^4  -3^4                 549^4  542^0
ZSF7               557^6  -4^0                 569^2  555^2
ZSH7               569^6  -3^4                 571^6  567^6
ZSK7               579^6  -4^2                 583^6  578^0

Early Opening Calls: 1 to 2 cents lower

Top News
**US Sept. Soybean 06/07 Crop Prod: 3.093 bln bu.; est. 3.09; Aug Rpt 2.928
**US Sept. Soybean Yield: 41.8 bpa; est. 42.0 bpa; Aug Rpt 39.6 bpa
**US Sept. Soymeal 06/07 Carryout: 300,000 bln T ; Aug Rpt 250,000 T

**World 06/07 Soybeans Carryout: 52.49 mmt; Aug Rpt 50.0
**World 06/07 Soymeal Carryout: 5.22 mmt; Aug Rpt 5.2
**World 06/07 Soyoil Carryout: 3.10 mmt; Aug Rpt 3.3

-- Exports:  South Korea bought 25,000 mt. US non GMO Soybeans for Dec.
-- Soybeans spreads: ADM 300 SX/SH, 200 SU/SX, RJ 200 SX/SF, PB 300 SF/SX,.

.

Cash Markets
-- CIF Soybeans steady up 2   Sept. +54 to +58, LH Sept. +57 to +62 Oct. +59
to +62, Nov. +67 to +74, Dec. +56 to +62, Jan. +60 to +67.
-- Processors:    Decatur  -10   Danville -10   Bloomington  -30   Gibson
City  -20
-- Board Crush Margins:         Sept. 83.01  up  3.35   Oct.  74.14  up
1.08   Jan.  77.06  up  1.14

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/

DISCLAIMER: Futures and options trading involve substantial risk. The valuation of futures and options may fluctuate, and as a result, clients may lose more then their original investment. In no event should the content of this website be construed as an express of an implied promise, guarantee or implication by of from the Linn Group, Inc. that you will profit or that losses can or will be limited in any manner whatsoever. Past performance is not necessarily indicative of future results. Information provided on this website is intended solely for informative purposes and is obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.

Information on this page is derived from third parties and is deemed to be reliable. STAT Communications Ltd. accepts no responsibility for errors, omissions or inaccuracies in any of the material presented on this web site. Opinions expressed on this web site are those of the respective individuals and/or institutions and do not represent the opinions of STAT Communications Ltd. or its management.