Linn Group Morning Soybean Comment

CHICAGO - Sep 13/06 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybean Update: November Soybeans settled 6 cents lower in the day session
after the release of yesterdays USDA crop production report. Traders say
that the market was surprisingly higher early and held up most of the day
session despite the bearish report but the market was ultimately pressured
by lower corn, wheat and outside markets. Also weighing on the Soybean
market is the recent decline in crude oil prices hurting demand for soybean
oil which has been tracking crude oil. So Korea purchased  90 TMT US beans
for Oct-Nov. China still active in both US and So American  beans. Japan and
Mexico will remain active in US beans. Domestic rail bids are firming. Wet
weather delaying early harvest of Midwest corn and soy and colder
temperatures next week may lead to some frost in the northern growing areas.
Funds on Tuesday sold 2,700 soybeans 3,000 Meal and 3,500 Oil. Chinese
Soybean, Meal and oil futures closed lower. Malaysian Palm oil futures
closed lower.


eCBOT Overnight
Contract            Last      Net Change       High      Low
ZSX6                 538^6    0^2                   540^2    536^6
ZSF7                553^2    1^2                   553^2    550^0
ZSH7                563^6    0^4                   564^0    563^6
ZMV6                157.2    0.5                    157.2    156.7
ZMZ6                159.3    0.4                    159.5    158.6
ZLV6                 24.30    -0.01                 24.30    24.30
ZLZ6                 24.74    -0.01                 24.75    24.63


Early Opening Calls: mixed

Top News
-- Exports: South Korea bought 90,000 mt. US Soybeans for Oct/Nov.
-- NOPA soybean crush expected released Thursday morning.
-- Deliv - 577 beans, 206 bean oil, 31 meal
-- The USDA September report came in with production numbers at or above
trade estimates while ending stocks came in at or below trade estimates. The
drums were already beating  within minutes of the reports release that
history says yields will get larger in the October report.
-- Australia's grain analyst Wheat Forecasters issued a new Australian Wheat
production estimate of 16.1 mmt. off 12%  from their previous estimate and
18.2 mmt. last year.
-- Funds all on the sell side again Tuesday.  Funds Sold 5,000 Corn, 2,700
Soybeans, 5,000 Wheat,  3,000 Meal, 3,500 Oil.
-- Soybean spreads:  JPM 700 SX/SH, 200 SX/SF, Bunge 200 SF/SN, 200 SH/SN,
300 SN/SX7


Cash Markets
-- CIF Soybeans steady up 2   Sept. +56 to +63, LH Sept. +58 to +65 Oct. +60
to +64, Nov. +68 to +74, Dec. +57 to +62, Jan. +61 to +67.
-- Processors: Decatur  -10; Danville -10; Bloomington  -25; Gibson City
-20
-- Board Crush Margins: Sept. 82.48 off .53, Oct. 73.65 off .49, Jan. 76.65
off  .41

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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