Linn Group Morning Soybean Comment

CHICAGO - Oct 12/06 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybean Update: Today Thursday October 12 the USDA released its October crop
report this morning and they estimate the soybean yield @ 3.189 bil bu and a
bpa of 42.8 this is below analysts estimates of a yield of 3.213 bil bu and
a bpa of 43.4. Traders say that the corn number is very bullish and with the
recent wheat trade today could be a big up day for all grain markets
including soybeans. Traders say everyone assumed that there was a big
increase in the size of the bean crop and although it did increase, the
increase was not as big as expected.  Wednesdays trade was higher by 1 ¾
cents boosted by gains in wheat. Funds bought 3,000 soybeans, 1,400 meal and
1,400 oil. Other bullish factors for the soybean market are concerns about
an expected slowdown in the U.S. Soybean harvest due to damp cold conditions
and talk of ongoing Chinese Interest in U.S. Soybeans. Overnight Malaysian
Palm Oil Futures closed higher.


eCBOT Overnight
Contract           Last      Net Change      High     Low
ZSX6                559^0   -3^2                  563^2   559^0
ZSF7                573^4   -3^4                  577^0   573^4
ZSH7                584^4   -3^0                  587^6   584^4
ZSK7                593^0   -2^0                  595^4   593^0
ZSN7                602^4   -2^2                  604^4   602^2
ZMV6                166.0    0.0                    166.0    166.0
ZMZ6                167.0    -0.2                   167.5    166.5
ZMF7                168.0    -0.3                   168.5    168.0
ZLZ6                 24.55    0.05                  24.62    24.43
ZLF7                 25.00    0.06                  25.02    24.94


Early Opening Calls:  7 to 10 higher

Report Recap
**US Oct. Soybean 06/07 Crop Prod: 3.189 bln bu.; est. 3.21; Sep Rpt 3.093
**US Oct. Soybean Yield: 42.8 bpa; est. 43.3 bpa; Sep Rpt 41.8 bpa

**US Oct Soybean 06/07 Carryout: .555 bln bu. ; est. 0.59; Sep Rpt 0.530
**US Oct Soymeal 06/07 Carryout: 300,000 T ; Sep Rpt 300,000 T
**US Oct Soyoil 06/07 Carryout: 2.694 bln lbs. ; Sep Rpt 2.644

**Oct Brazil 06/07 Soybean Output: 56.0 mmt; Sep Rpt 56.0
**Oct China 06/07 Soybean Output: 16.2 mmt; Sep Rpt 16.2

**World 06/07 Soybeans Carryout: 55.06 mmt; Sep Rpt 52.49
**World 06/07 Soyoil Carryout: 3.10 mmt; Sep Rpt 3.10
**World 06/07 Soymeal Carryout: 5.14 mmt; Sep Rpt 5.22


Top News
-- Funds a little more aggressive on the buy side Wednesday buying  9,000
Corn, 6,500 Wheat, 3,000 Soybeans, 1,400 Meal, 1,400 oil.

Cash Markets
-- CIF Soybeans off  2 . Oct. +56 to +61, LH Oct. +59 to +62, Nov. +67 to
+69, Dec. +58 to +63, Jan. +62 to +73.
-- Processors:    Decatur  -15    Danville -18   Bloomington  -20   Gibson
City  -20
-- Board Crush Margins:     Oct.  68.60 off 2.52   Dec. 75.09  off 1.20
Jan. 67.60  off  .87

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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