Linn Group Morning Soybean Comment

CHICAGO - Oct 16/06 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybean Update: Soybeans continued their rally on Friday Closing 11 ¾ cents
higher. The commitment of traders report released Friday shows liquidation
of the net short positions with the report showing funds short 25,282 down
23,455 from the previous report. Traders say that as long as the Wheat
continues to show strength it will be difficult to break soybeans but to be
cautious of significant price corrections. Today the NOPA crush was released
@ 137.320 mil. bu. 3 mil. bu.  above the average estimate of 133.5 mil. bu.
This implies a larger domestic use than anticipated with larger yields and
crush giving more production and lower stocks.  Funds on Friday bought 5,000
Soybeans, 4,600 soybean meal and 2,000 soybean oil. Chinese soybean, Meal
and oil closed higher. Malaysian Palm Oil Futures closed higher.



eCBOT Overnight
Contract            Last      Net Change       High      Low
ZSX6                 589^6    -1^6                  589^6    585^4
ZSF7                603^4    -2^0                  604^0    599^4
ZSH7                612^4    -3^0                  613^0    609^6
ZSK7                619^2    -2^6                  621^4    616^4
ZSN7                628^0    -2^4                  628^6    625^4
ZMZ6                179.0    -0.7                   179.2    177.9
ZMF7                179.5    -1.1                   180.6    179.1
ZMH7                181.9    -1.5                   183.4    181.8
ZLZ6                 24.90    -0.03                 24.93    24.72

 Opening Calls: 1 to 3c lower

Top News


-- Brazil's Safras Mercado estimated Brazil bean crop at 55.2 mln mt, that's
just slightly higher than the Brazilian gov't estimated range of 53.5 to
55.0 mln mt.
Ag exports for fiscal 2006 were pegged at $63.5 bln and expected to meet the
forecasted exports of $68.0 bln, according to the USDA
-- Funds continued their buying way s Friday buying: 5,000 Soybeans, 4,600
Meal and 2,000 Oil.
-- The preliminary report shows open interest in Soybeans up 1,157.
-- The USDA confirmed Friday that Soybean Rust was discovered on some mature
Soybean in southern Illinois's Pope county.


Cash Markets
-- CIF Soybeans off  1-4 . Oct. +50 to +60,  Nov. +63 to +69, Dec. +58 to
+63, Jan. +62 to +73.
-- Processors: Decatur  -8    Danville -15   Bloomington  -15   Gibson City
-15
-- Board Crush Margins: Nov. 78.07 up 2.77   Jan. 69.79  up 1.87   Mar.
69.69  up  2.50

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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