Linn Group Morning Soybean Comment

CHICAGO - Oct 3/06 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybean Update: November soybeans opened strong on Monday but weakened as
the session progressed. Overnight soybeans lost another penny and a half.
Traders say Improving weather and outlooks for the supply of soybeans to
build as harvest expands is expected to continue to pressure the soybean
complex. Weekly crop progress reported on Monday afternoon shows the U.S.
soybean crop was 19%  harvested, lagging the five year average of 26% at
this time. 87% of the crop is dropping leaves compared with a five year
average of 84%. Some reports of a pickup in export business as the USDA
confirmed the sale of 110,000 mt of U.S. soybeans to So. Korea. China and
much of Asia will be slow in the export market for the remainder of this
week due to a long holiday. USDA also reported 19.571 mil. bu. of soybeans
were inspected, versus estimates for 10 mil. bu to 12 mil. bu. funds on
Monday were quiet buying 400 meal, sold 600 soybeans and even in oil.

eCBOT Overnight
Contract            Last      Net Change       High      Low
ZSX6                 543^6    -1^4      545^0    543^6
ZSF7                558^0    -2^2      560^0    558^0
ZSH7                570^6    -0^2      570^6    569^6
ZSK7                579^2    -1^6      579^2    579^0
ZSN7                590^0    0^0       590^0    589^0

ZMV6                162.0    -0.1       162.1    162.0
ZMZ6                163.1    -0.4       164.1    163.0
ZMF7                165.3    0.6        165.3    165.2
ZLV6                 23.50    -0.08     23.52    23.50
ZLZ6                 23.90    -0.04     24.00    23.88
ZLF7                 24.30    -0.06     24.30    24.30


Early Opening Calls:

Top News
-- The USDA progress report shows Soybean  harvest  19% complete vs. 33%
last year and 26% average. Corn and Soybean harvest behind last year and
average but not a big market factor yet.
-- Crop consultants in Brazil's state of Mato Grosso report that weather is
optimum for Soybean planting and probably 100% of the producers in the
northern areas will start planting.
-- Funds not that active Monday. Funds Bought 400 Meal; Sold 600 Soybeans;
Even Oil.
-- Soybean spreads: ADM 900 SX/SF, Tenco 500 SX/SF, Bunge 500 SX/SF, Fimat
700 SF/SX.


Cash Markets
-- CIF Soybeans steady off  2. Oct. +59 to +62, LH Oct. +62 to +66, Nov. +67
to +72, Dec. +57 to +63, Jan. +10 to +8.
-- Processors:    Decatur  -15    Danville -22   Bloomington  -30   Gibson
City  -20
-- Board Crush Margins:     Oct.  70.75 up .60   Dec. 77.79  off  1.05
Jan. 70.05  off

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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