Linn Group Morning Soybean Comment

CHICAGO - Oct 11/06 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybean Update: Soybeans gave up their wheat led rally on Tuesday closing
down 14 cents in the November contract. Traders attribute the break to the
soybean market being overbought and the wheat unable to bring soybeans
along. Soybeans have climbed almost 30 cents over the past week despite the
ongoing harvest of what could be the largest crop in history. The USDA
reported late Tuesday that 47% of U.S. soybean crop was harvested, above
trade estimates for 40% to 45%. Weekly export inspection figures released
Tuesday show that 23.123 mil. bu. of soybeans were inspected for export
above estimates for 13 mil. bu. to 17 mil. bu. Funds on Tuesday sold 4,500
soybeans, 1,500 meal and 1,500 oil. Tomorrow Thursday October 12th the USDA
will issue October Production and Supply and demand report. Traders expect
the USDA to raise estimates of the 2006 U.S. soybean crop to be 3.2 bil. bu.
and a yield of 43.4 bu per acre, above the Sept. estimate of 3.093 bil bu
and a yield of 41.8 bpa. Overnight Malaysian Palm Oil closed weaker,.

eCBOT Overnight
Contract            Last      Net Change       High      Low
ZSX6                 560^6    0^2                   561^4    558^6
ZSF7                575^0    -0^2                  575^4    573^0
ZSH7                585^0    -0^2                  586^0    583^6
ZSK7                594^0    1^0                   594^0    591^4
ZSN7                602^4    -0^2                  603^6    600^0
ZMV6                165.7    -0.1                   165.9    165.7
ZMZ6                166.9    0.1                    167.7    166.5
ZMF7                168.0    0.1                    168.0    167.8
ZLZ6                 24.45    -0.08                 24.52    24.40


Early Opening Calls:

Top News
-- The weekly USDA progress report shows Corn harvest 29% complete vs. 35%
last year and 32% average.  Soybean  harvest  47% complete vs. 56% last year
and 47% average.

-- South Korea passed on a tender for 50,000 MT of U.S. non-GMO soybeans;
lack of bidders cited as the reason.

-- Funds Tuesday sold 4,500 Soybeans, 1,500 Meal, 1,500 Oil.

-- Soybean spreads: JPM 1,500 SF/SX, Fimat 2,800 SF/SX, ADM 2,600 SX/SF, GH
500 SX/SF.


Cash Markets
-- CIF Soybeans up 2 to 3. Oct. +60 to +63, LH Oct. +61 to +65, Nov. +69 to
+72, Dec. +57 to +63, Jan. +62 to +75.

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

*       Board Crush Margins:  Oct. 71.12 up 2.78  Dec. 76.29 up 1.68  Jan.
68.47 up 2.01

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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