Linn Group Morning Soybean Comment

CHICAGO - Oct 2/06 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybean Update: Fridays session ended lower by 5 ½ cents in the November
soybean contract. Traders say it was due to more favorable weather allowing
full harvest activities to resume. Prospects for a huge crop to be harvest
are also weighing on Soybean prices. Adding support to the Soybean complex
is the fact that there were no October deliveries and lighter than expected
soybean oil postings on the First notice day. Overnight November soybeans
rallied 5 ½ cents to erase Fridays losses. Traders indicate that overnight
expectations were for a lower trade but that the market rallied overnight
due to short covering and fund buying.  The USDA reports 110 TMT soybeans
sold to South Korea. So. Korea is also showing interest in U.S. Meal. Funds
on Friday were sellers of 2,500 Soybeans, 2,000 Oil and bought 1,000 Meal.
Malaysian Palm oil futures closed marginally down overnight.

eCBOT Overnight
Contract            Last      Net Change       High      Low
ZSX6                 553^6    6^2                   554^4    546^6
ZSF7                567^6    5^4                   568^2    560^6
ZSH7                579^6    6^6                   580^0    573^0
ZMV6                163.5    1.6                    163.5    162.3
ZMZ6                165.4    1.9                    166.0    163.4
ZMF7                166.6    2.2                    166.6    166.6
ZLZ6                 24.38    0.14                  24.49    24.24


Opening Calls: higher 5 to 6 cents

Top News
-- Yield reports on Soybeans continue to be good from almost all areas of
the Corn Belt while Corn yield reports continue to vary from same as last
year, above last year and below last year.  Have to be concerned that the
Corn yields are not consistent , especially in Illinois.

-- The Commitment of Traders report with Options as of September 26 shows
Funds:

Soybeans  Short  50,016  up  538
Meal  Short 32,463  off  3,105
Oil  Short  8,473  up  9,334

-- Fund trade Friday was mixed and slowed appreciably from Thursday's pace.
Funds Sold  2,500 Soybeans & 2,000 Oil. Bought 1,000 Meal.

-- Soybean spreads: Fimat 3,300 SF/SX, JPM 1,100 SF/SX, 400 SN/SX,  Caly 900
SF/SX


Cash Markets
-- CIF Soybeans steady up 2. FH Oct. +60 to +63, LH Oct. +60 to +??, Nov.
+67 to +72, Dec. +57 to +62, Jan. +60 to +68.

-- Processors:    Decatur  -20    Danville -22   Bloomington  -30   Gibson
City  -20

-- Board Crush Margins:     Oct.  70.15 up  3.05  Dec. 78.84  up  4.48
Jan. 70.47  up  3.07

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.