Linn Group Morning Soybean Comment

CHICAGO - Sep 18/06 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybean Update: Soybeans closed higher by 4 ½ cents on Friday on what
traders report was technical buying and triggering of buy stops. Overnight
we are an additional 4 ½ cents higher. Commodity funds hold near record
short positions in soybeans and meal making both markets vulnerable to short
covering. Last week November soybeans hit a contract low of 537.5. Traders
say cool wet weather in the Midwest was expected to continue for the next
couple of weeks adding support to the market. Cash markets were firmer as a
result and spot basis bids for beans jumped 4 to 5 cents in several U.S.
locations. China is still active in both U.S. and South American beans.
Domestic crushing margins have firmed in the last two weeks. The commitment
of traders report with options as of September 12th shows funds short 49,964
up 4,740 and meal short 747 up 1,825 and Oil long 3,909 off 14,177 Funds on
Friday were aggressive buying 6,000 Soybeans, 2,700 meal and sold 1,500 Oil.
Malaysian Palm Oil futures closed higher.


Opening call  2 to 4 higher.

oybean Update

eCBOT Overnight
Contract            Last      Net Change       High      Low
ZSX6                 554^2    4^4                   556^6    551^4
ZSF7                567^2    4^6                   569^4    564^2
ZSH7                578^6    4^6                   578^6    576^4
ZMV6                162.7    1.3                    162.9    162.2
ZMZ6                164.0    1.4                    164.4    163.0

ZLV6                 24.70    0.01                  24.78    24.70
ZLZ6                 25.16    0.10                  25.30    25.07


Early Opening Calls: higher

Top News
-- Exports: Officials from the Iraqi Grain Board will visit the US this week
raising hope for Wheat buys.
-- The Commitment of traders report with Options as of September 12 shows
Funds: Soybeans Short 49,964 up 4,740; Meal Short 47,891 up 8,815; Oil Long
3,909 off 14,177
-- Funds aggressive in Soybeans Friday buying 6,000 contracts. Funds also
bought 2,700 Meal; Sold 1,500 Oil.
-- Soybean spreads: Bunge 600 SF/SN, JPM 600 SX/SF, ADM 500 SF/SX, Tenco 600
SX7/SX

Cash Markets
-- CIF Soybeans steady up 2.  Sept. +64 to +70,  Oct. +62 to +66, LH Oct.
+64 to +70, Nov. +69 to +75, Dec. +57 to +62, Jan. +61 to +70.
-- Processors: Decatur  -10; Danville -5; Bloomington  -20; Gibson City  -10

-- Board Crush Margins: Sept. 85.67 up 3.19; Oct. 76.49 up 2.84; Jan. 77.40
up .75

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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