Linn Group Morning Soybean Comment

CHICAGO - Sep 15/06 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybean Update: Soybeans closed stronger by 4 ¾ cents on Thursday and an
additional 3 cents overnight in the November contract. Traders say most of
the rally was from the higher than expected weekly export sales released
yesterday and potential harvest delays. Forecasts for continued wet weather
and a cold snap next week could delay the early U.S. soybean harvest. Spot
basis bids for soybeans were strong in the U.S. and basis levels are a bit
higher in the interior. China raised tax rebates on exports of Soymeal and
veg oils. The rebate on Meal and Soyoil is now 13% vs. the previous rebate
of 11%. Funds on Thursday Sold 4,300 Wheat, 700 Corn,. Bought 1,800
Soybeans, 1,000 Meal, 2,800 Oil. Chinese Soybean, Meal and Oil futures
closed lower. Malaysian Palm oil futures closed mixed to mostly weak.


Soybean Update

eCBOT Overnight
Contract            Last      Net Change       High      Low
ZSX6                 548^2    3^0                   548^2    543^0
ZSF7                558^4    -0^2                  559^0    553^0
ZSH7                569^6    0^0                   570^2    569^0
ZSK7                577^2    -2^4                  577^2    577^2
ZSN7                589^6    0^2                   589^6    589^2
ZMV6                158.6    0.0                    158.6    158.3
ZMZ6                160.3    0.5                    160.3    159.4
ZLV6                 24.89    0.03                  24.90    24.81
ZLZ6                 25.29    0.03                  25.29    25.15


Opening Calls: 1 to 2 higher.

Top News

 Exports:

South Korea bought 56,000 mt. Indian Meal for Dec.

South Korea bought 23,500 mt. US wheat for Oct.

South Korea tendering for 60,000 mt. opt. org. Meal for Dec/Jan.

-- Ocean freight keeps firming with Gulf to Japan at $50.90  vs. $39.77 last
year. PNW to Japan $37.01 vs. $24.95 last year.

-- Indian oilseed output during winter harvest is expected at 13 mln T vs
year ago figure of 15 mln T, according to senior Indian ag ministry
spokeperson.

-- 6-10 Day Forecast: Below Normal Temps. Normal to Above Precip. The Corn
Belt looks to be dry today and Saturday.

--Showers and thunderstorms will move across the belt Sunday and Monday.
Temps cool early next week.

-- OPEC lowers demand for its crude production in 2007 by 200,000 bpd to
28.1 mln bpd, according to its Sept monthly report

Cash Markets

CASH:  Bn Barge           Corn Barge        SRW Barge       HRW Track 12Pro
ILL RIV FRT
Sep      +67/70 X           +63/65 Z              +30/35 Z          +75/80 Z
550
Oct       +68/72 X           +63/67 Z              +40/43 Z          +78/85
Z                     610
Nov       +70/75 X           +63/67 Z              +40/45 Z          +78/87
Z                     510

Truck    Beans   Corn     Wheat   Meal Hi-pro        Oil
Chicago            -21 X    -32 Z    -75 Z
Toledo   -22 X    -22 Z    -89 Z
Dec ILL -10 X    +0 Z                +2 V                 -175 V

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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