Linn Group Morning Soybean Comment

CHICAGO - Oct 10/06 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybean Update: The Wheat market dominated the Grain complex at the CBOT on
Monday closing limit up / Limit bid and again limit up overnight. This has
boosted the Price of both soybeans and corn. November soybeans closed 10 ½
cents higher during yesterday session. Traders report the surge in wheat
prices is due to liquidation of bear spreads as many were caught short this
market. Traders continue to caution about being too bullish during soybean
harvest and report that harvest is progressing well and should limit
rallies.  Funds were aggressive buyers on Monday buying 10,000 Soybeans,
3,000 oil and 800 soybean meal. AgResource released their Oct. Soybean
production at 3.229 bil. bu. and a bpa of 43.7.Shippers report low water
levels on the Mississippi river. Near St. Louis the river is reported to be
16 to 18 inches below normal which will slow the flow of barges along the
middle Mississippi river. This reduced cargo flow will increase barge cost
for grain shippers. Overnight Malaysian Palm oil futures closed firm
overnight.

eCBOT Overnight
Contract            Last      Net Change       High      Low
ZSX6                 573^0    -1^4                  574^4    568^0
ZSF7                586^4    -2^6                  588^2    582^0
ZSH7                597^2    -1^6                  598^4    593^2
ZSK7                605^4    -1^0                  605^4    605^4
ZSN7                614^0    -2^2                  616^0    614^0
ZMZ6                169.9    -0.2                   170.9    168.2
ZMF7                170.9    -0.1                   171.0    170.5
ZLV6                 24.72    0.02                  24.72    24.72
ZLZ6                 25.02    0.03                  25.05    24.88
ZLF7                 25.37    -0.04                 25.41    25.34


Early Opening Calls:1 to 2 lower.

Top News
-- AgResource released their October Soybean production at 3.229 bil.bu.
They are using a 43.7 bu. per acre yield. They estimate 2006/07 ending
stocks at  620 mil.bu and 2007/08 at 536 .bu.

-- Brazil grain analyst Celeres issued a new estimate for Brazil 2006/07
Soybean production at 53.6 mmt. vs. their estimate last month of  55.3 mmt.

-- Funds aggressive on the buy side Monday buying 10,000 Soybeans, 3,000
Oil, 1,800 Meal.

-- Soybean spreads: Term 1,000 SF/SX, FCS 1,000 SF/SX, Fimat 800 SF/SX,
Tenco 400 SN/SX7


Cash Markets
-- CIF Soybeans steady. Oct. +58 to +61, LH Oct. +61 to +65, Nov. +67 to
+71, Dec. +58 to +63, Jan. +62 to +72.

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

-- Board Crush Margins:     Oct.  68.34 up  3.14   Dec. 74.61  up  3.03
Jan. 66.46  up  1.59

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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