Linn Group Morning Soybean Comment

CHICAGO - Oct 17/06 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybean Update: Soybeans took a break from their harvest rally on Monday
closing 2 ¼ cents lower but gained 7 cents overnight. Traders cite several
factors for this counter seasonal rally including delayed harvest due to wet
weather, increased feed demand, and higher wheat and corn prices bringing
soybeans along. Late Monday the USDA crop progress report released shows
soybean harvest at 69% complete vs. 74% last year and a 65% average. Spot
basis bids for soybeans were steady in the Midwest on Monday cash dealers
reported, but said that farmer selling was spotty as farmers are waiting for
higher prices. German Oil seed analyst Oil World reports soybean production
will turn out larger than expected but the consumption forecast is up by 1.1
mil. mt. from its previous estimate and up by 10.4 mil. mt. last season.
Brazil grain analyst estimates 19% of the 2006/07 soybean crop has been sold
by producers vs. 25% at this time last year, with 4% planted so far. Funds
on Monday sold 500 Soybeans, 300 oil and bought 1,200 meal.

Soybean Update

eCBOT Overnight
Contract            Last      Net Change       High      Low
ZSX6                 596^0    7^0                   596^0    587^4
ZSF7                610^0    6^4                   610^0    601^6
ZSH7                620^0    6^6                   620^0    612^0
ZSK7                628^0    6^4                   628^0    620^0
ZSN7                637^0    5^6                   637^0    630^4
ZMZ6                180.4    1.9                    180.4    178.1
ZMF7                181.0    1.8                    181.0    179.8
ZLZ6                 25.11    0.18                  25.11    24.86
ZLF7                 25.30    -0.01                 25.31    25.30
ZLH7                 25.66    0.00                  25.66    25.66


Early Opening Calls: 5 to 7 higher

Top News
-- Chicago Mercantile Exchange confirms buyout deal for rival CBOT exchange.
The combined value of the 2 exchanges is at $25
billion based on recent closing prices.

Exports: Taiwan bought 58,000 mt. US Soybeans for Nov.

-- Funds bought 1,200 Meal, while selling 500 Soybeans and 300 Oil.
-- Soybean spreads: ADM 2,100 SX/SF, Citi 500 SX/SH, RJ 400 SX/SH, Fimat 600
SF/SX.



Cash Markets
-- CIF Soybeans steady . Oct. +51 to +59,  Nov. +63 to +65, LH Nov. +69 to
+72, Dec. +58 to +63, Jan. +62 to +73, Feb. +45 to +62.

-- Processors:    Decatur  -8    Danville -12   Bloomington  -15   Gibson
City  -15

-- Board Crush Margins:     Nov..  77.93 off  .14   Jan.. 69.15  off  .64
Mar. 68.53  off  1.16

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/

DISCLAIMER: Futures and options trading involve substantial risk. The valuation of futures and options may fluctuate, and as a result, clients may lose more then their original investment. In no event should the content of this website be construed as an express of an implied promise, guarantee or implication by of from the Linn Group, Inc. that you will profit or that losses can or will be limited in any manner whatsoever. Past performance is not necessarily indicative of future results. Information provided on this website is intended solely for informative purposes and is obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.

Information on this page is derived from third parties and is deemed to be reliable. STAT Communications Ltd. accepts no responsibility for errors, omissions or inaccuracies in any of the material presented on this web site. Opinions expressed on this web site are those of the respective individuals and/or institutions and do not represent the opinions of STAT Communications Ltd. or its management.