Linn Group Morning Soybean Comment

CHICAGO - Oct 6/06 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybean Update: A bull market in soybeans during harvest? Soybeans have
gained 23 cents in 2 days. Traders say yesterdays 10 ¼ cent rally in the
November contract was due to impressive weekly export sales figures and
short covering. Yesterday the USDA reported higher than expected soybean
exports last week with 1,254,800 mt above estimates for 700,000 to 900,000
mt. Traders caution that the market appears technically overbought and
remind us that we are currently harvesting one of the largest soybean crops
in history which could limit the upside. One analyst says corn and wheat are
outpacing the soybean rally and outside of the good export sales numbers
there isn't a lot of bullish news. Funds were active in soybeans on Thursday
buying 6,000 contracts, 3,600 meal and 2,000 oil. Malaysian Palm oil futures
closed flat.





eCBOT Overnight
Contract            Last      Net Change       High      Low
ZSX6                 564^4    -1^0                  566^6    562^4
ZSF7                578^6    -1^2                  580^4    576^4
ZSH7                589^4    -0^2                  590^6    588^0
ZSK7                596^2    -1^6                  598^4    595^0
ZSN7                605^6    -2^6                  608^0    605^6
ZMV6                167.0    -0.3                   167.0    167.0
ZMZ6                169.5    -0.1                   169.8    168.0
ZMF7                170.1    -0.5                   170.1    170.1
ZLZ6                 24.03    -0.03                 24.05    23.98
ZLF7                 24.37    -0.11                 24.40    24.37


Early Opening Calls: mixed to easier

Top News
-- Funds trade a mixed bag Thursday, funds bought 6,000 Soybeans, 3,600
Meal, 2,000 Oil.
-- Brazil's government estimated Brazil  2006/07 Soybean production at 53.5
to 55.0 mmt.  This compares to last years
crop of 53.5 mmt.
-- Argentina has received some helpful rains this week but more is needed.
Australia has only scattered showers in the
forecast when what they need is a good general rain.
-- The preliminary report shows open interest for Soybeans off 4,465.
-- The CBOT raised hedge margins on Corn to $500 from $450   Wheat  $1000
vs. $800
-- Soybean spreads: ABN 1,500 SF/SX, Adv 700 SX/SF, Term 700 SF/SX, ADM 500
SF/SX.


Cash Markets
-- CIF Soybeans up 1-2. Oct. +59 to +62, LH Oct. +63 to +66, Nov. +69 to
+74, Dec. +59 to +63, Jan. +63 to +72.

-- Processors:    Decatur  -15    Danville -20   Bloomington  -20   Gibson
City  -20

-- Board Crush Margins:     Oct.  64.58 off  1.89   Dec. 72.28  off  1.89
Jan. 64.60  off  1.37

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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