Linn Group Morning Soybean Comment

CHICAGO - Nov 1/06 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybean Update: Soybeans settled 9 cents lower in the January contract as
traders say the market is correcting off an overbought condition and big
commercial deliveries. January Soybeans have climbed over 90 cents during
the Month of October to close the month 82 cents higher than the last
trading day in September. Deliveries on the November contract were at 1,861
near the upper range of estimates for 1,000 to 2,000 contracts. Tuesdays
volume was on the high side and funds were net sellers of 2,500 soybeans,
2,000, 1,000 meal and 3,500 Oil.

South Korea passed on a tender to buy 50,000 mt. of non GMO soybeans due to
a lack of bidders. Oilseed analysts Oil world said current high U.S. soyoil
stocks should not be seen as bearish for global prices. They cite brisk
biofuel demand in the U.S and say it is unlikely to be exported. Oil world
says soyoil and palm oil prices are likely to rise because of strong demand.
Brazil grain analyst Cerealpar issued it's first estimate for Soybean
production at 54.8 mmt vs. last years production of 53.4 mmt. Overnight
Malaysian Palm oil futures closed higher.

eCBOT Overnight

Contract            Last      Net Change       High      Low

ZSX6                 632^4    2^2                   632^4    628^6

ZSF7                644^6    0^4                   646^0    642^0

ZSH7                655^2    0^6                   655^6    652^2

ZSK7                662^0    0^2                   662^2    659^2

ZSN7                669^0    1^4                   669^0    666^0

ZMZ6                189.5    -0.1                   189.6    189.2

ZMF7                190.1    -0.5                   190.5    189.9

ZMH7                191.9    -0.6                   192.6    191.9

ZLZ6                 26.95    0.12                  26.95    26.70

ZLF7                 27.32    0.17                  27.32    27.15

ZLH7                 27.53    0.03                  27.53    27.40

Early Opening Calls: 1 to 2 cents higher.

Top News

-- Export News: S Korea buys 110,000 MT of S American soymeal.

-- Export News: S Korea passes on 50,000 mt US Soybean tender.

-- Deliveries: Soybeans 2,013 thru 10/26/06: Term put out 427; ADM stopped
1,347.

-- Renewable Fuels assoc. released stats showing Aug. ethanol production
totaled 329,000 bpd, well ahead of the 69,000 bpd seen in Aug 2005.
Meanwhile, Jan-Aug production averaged 305,000 bpd.  Ethanol Stocks total
384.7 mln gal.

-- Funds all on the Sell side Tuesday, sold 2,500 Soybeans, 1,000 Meal,
3,500 Oil.

-- Open interest in Soybeans off 3,743.

-- Soybean spreads:  JPM 1,000 SF/SX, Tenco 1,000 SF/SX, Carr 500 SF/SX,
Rand 1,000 SX/SF

Cash Markets

-- CIF Soybeans  steady  Nov. +59 to +61, LH Nov. +63 to +68, Dec. +58 to
+62, Jan. +62 to +65, Feb. +53 to +60. Mar. +42

to +47.  River house bids mostly steady.

-- Processors:    Decatur  -10F    Danville -5   Bloomington  Even   Gibson
City  -14F

-- Board Crush Margins:     Nov.  82.00 up  .26   Jan. 73.72  up  1.08
Mar. 71.50  unch.



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.