Linn Group Morning Soybean Comment

CHICAGO - Oct 4/06 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybean Update:  Soybean market appears to be weakening as harvest pressures
are weighing on prices. Traders say the market is stuck in a range from 540
to 560 but indicate concerns of the low end of the range coming out during
this harvest period. November soybeans settled just a nickel off their
contract lows and traders indicate they expect this pressure to continue.
The Commitment of Traders already shows a net short position which could
grow as short farmer hedges continue through the harvest season. Traders say
outside markets are not offering any help in price support as Gold lost over
$21.00 yesterday, Silver down $.63 and crude oil trading below $ 60.00.
Private research group The Linn Group released its October Crop production
estimate, estimating soybean production at 3.272 bil. bu. with an average
yield of 44.25 bpa. these estimates come in approximately 5% over the USDA
estimate. Informa economics will release its crop estimates on Thursday.
Asian markets are slowed by holiday. Funds on Tuesday sold 2,000 Soybeans,
3,000 Oil and 500 Meal. Malaysian Palm oil futures closed weaker overnight.


Soybean Update

eCBOT Overnight
Contract            Last      Net Change       High      Low
ZSX6                 543^4    1^0                   545^0    542^2
ZSF7                557^2    0^0                   558^2    557^0
ZSH7                569^0    0^2                   570^4    568^4
ZMZ6                163.3    0.6                    163.3    162.5
ZMF7                164.5    0.9                    164.5    163.8
ZLV6                 23.30    0.02                  23.30    23.30
ZLZ6                 23.66    -0.01                 23.78    23.65
ZLF7                 24.04    -0.04                 24.04    24.04


Early Opening Calls: steady

Top News
-- Exports:  South Korea tendering for 50,000 mt. non GMO Soybeans fo
Jan/Feb.
-- USDA reports private sale of 116,000 T soybeans 06/07 sold to China
-- The USDA announced due to dry weather conditions they will re-survey Corn
and Soybeans acres in South Dakota, Georgia and Alabama for the October
production report.
-- Soybean spreads: Man 900 SH/SX, Term 400 SX/SH, RJ 400 SX/SF, 400 SX/SH,
FCS 700 SH/SF.



Cash Markets
-- CIF Soybeans steady off  2. Oct. +58 to +62, LH Oct. +60 to +66, Nov. +67
to +72, Dec. +59 to +63, Jan. +62 to +68.
-- Processors:    Decatur  -15    Danville -20   Bloomington  -30   Gibson
City  -20
-- Board Crush Margins:     Oct.  66.46 off  4.29   Dec. 75.81  off  1.89
Jan. 67.55  off  2.50

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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