Linn Group Morning Soybean Comment

CHICAGO - Oct 9/06 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybean Update : Fridays close in November soybeans was 16 ½ cents higher
than the previous weekly close. Traders say the higher price is attributed
to a rally in wheat which is driving the whole grain complex higher. Traders
caution that rallies of this type in early harvest can often be followed by
severe quick and deep corrections. Another factor in the soybean strength is
the lack of farmer selling combined with the commercial trader that was
ready for a big harvest with early purchases. Overnight Ukraine announced
limited exports for the balance of the year. South Korea reporting to be
interested for 50 tmt. non GMO edible beans. Mexico remains active in U.S.
Soybeans. The USDA will issue its monthly production and supply and demand
report on Thursday. Funds on Friday were buyers of 1,500 Soybeans, 300 Oil
and sold 3,500 Meal. Malaysian Palm oil futures closed higher.

eCBOT Overnight
Contract            Last      Net Change       High      Low
ZSX6                 565^0    1^0                   565^0    560^4
ZSF7                578^2    0^4                   578^2    574^2
ZSH7                588^0    -0^2                  588^0    585^0
ZSK7                595^2    -0^2                  595^2    593^0
ZSN7                606^2    1^0                   606^2    603^0
ZMV6                165.9    -0.1                   165.9    165.4
ZMZ6                168.4    0.6                    168.4    166.7
ZMF7                169.0    -0.1                   169.0    168.5
ZLZ6                 24.29    0.07                  24.29    24.16

Early Opening Calls: ½ to 1 cent higher.

Top News
-- Would look for USDA 's progress report this afternoon to show both Corn
and Soybean harvest 40 to 45% complete.

-- The Commitment of Traders report with Options as of October 3 shows
Funds:
Soybeans   Short  48,737  off  1.279
Meal  Short  32,871  up  408
Oil  Short  16,932  up  8,459

-- Fund activity Friday was moderate funds bought 1,500 Soybeans, 300 Oil.
Sold 3,500 Meal.

-- Soybean spreads: HC 1,000 SX/SF, Bunge 1,000 SF/SX, Tenco 700 SN/SF,
Fimat 600 SF/SX.

Cash Markets
-- CIF Soybeans off 1-2. Oct. +58 to +60, LH Oct. +61 to +65, Nov. +68 to
+73, Dec. +59 to +63, Jan. +63 to +72.

-- Processors:    Decatur  -15    Danville -18   Bloomington  -20   Gibson
City  -20

-- Board Crush Margins:     Oct.  65.20 up  .62   Dec. 71.58  off  .70
Jan. 64.87  up  .27

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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