Linn Group Morning Soybean Comment

CHICAGO - Nov 7/06 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybean Update: Mondays Soybean trade was quiet closing unchanged in the
January contract. The market closed firm after a range bound day in a 9 cent
range. Traders say market activity on Monday was the slowest in weeks. Funds
were quiet as they were net buyers of 600 Soybeans, 1,800 Meal and sold 500
Oil.

The USDA weekly crop progress report released yesterday after the close
shows the soybean harvest at 90% complete vs. 95% last year and a 91%
average. Brazil grain analyst Celeres estimates 32% of the Brazil Soybean
crop is planted vs. 22% last week and 28% last year. Oilseed analysts Oil
World reports that Argentine farmers are likely to plant more soybeans this
year due to a rally in soybean prices on the world market.  Argentine
soybean plantings have more than doubled during the past 10 years they
report. Brazil bean basis offers off 10 cents to 60 over for old crop with
new crop trading down to 7 over. This is 60 cents less than US beans for
next spring. Cash traders report China bean buying has slowed on
deteriorated crushing margins and huge program out of the US over the last 3
weeks. Their interest has moved to vegoil with very active buying over the
last several weeks favoring palm oil and So American soy oil. Overnight
Malaysian Palm oil futures closed lower. Chinese soybean futures closed
mixed, Meal lower, Oil higher.

ECBOT Overnight

Contract            Last      Net Change       High      Low

ZSX6                 647^4    -1^6                  649^4    647^0

ZSF7                660^2    -2^4                  664^0    659^6

ZSH7                673^0    -1^4                  675^2    672^0

ZSK7                680^2    -2^2                  683^0    680^2

ZSN7                689^0    -0^4                  689^4    687^4

ZMZ6                196.5    0.0                    197.3    195.5

ZMF7                196.0    -0.4                   197.1    195.7

ZMH7                198.1    -0.3                   199.5    198.1

ZLZ6                 27.45    -0.09                 27.56    27.43

ZLF7                 27.79    -0.10                 27.81    27.79

ZLH7                 28.11    -0.14                 28.11    28.11

Early Opening Calls: 1 to 2 cents lower

Top News

-- The USDA progress report shows Soybean harvest  90% vs. 95% last year and
91% average.

-- Brazil grain analyst Celeres estimates 32% of the Brazil Soybean crop is
planted vs. 22% last week and 28% last year.

-- Brazil bean export registrations for old crop up to 26.9 MMT compared to
23.1 last year

-- Soybean spreads: Term 600 SX/SF, JPM 500 SF/SX, USA 300 SF/SX, Tenco 200
SX/SF

-- Barge freight steady weak: STL. 410 - 430     IL. River  480 - 500   Ohio
400 - 450

-- CBOT Nov soybean deliveries: 1,674 contracts

-- Funds were not big players Monday. Funds bought 600 Soybeans; 1,800 Meal.
And they sold 500 Oil.

Cash Markets

            Bn Barge           Corn Barge        SRW Barge       HRW Track
12Pro          ILL RIV FRT

Nov       +49/51 F           +62/64 Z              +38/43 Z          +60/70
Z         490

Dec      +58/60 F           +63/66 Z              +40/45 Z          +62/72 Z
470

Jan       +62/64 F           +55/57 H              +35/   H           +55/
H          490

Truck                Beans   Corn     Wheat   Meal Hi-pro        Oil

Chicago                       -28 F     -6 Z      -45 Z

Toledo              -27 F     -18 Z    -45 Z

Dec ILL            -5 F      +10 Z              -6 Z                   -25 Z



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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