Linn Group Morning Soybean Comment

CHICAGO - Nov 8/06 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybean Update: Soybeans gained 4 /12 cents on Tuesday and an additional 8 ¼
cents overnight keeping pace with Corn. Traders say as long as corn
continues to make new highs soybeans will need to follow. Lots of talk of
increased index fund investment as Goldman Sachs released a press report
saying that the Goldman Sachs Index will increase from $70 bil to $110 bil
as of January. Traders are bracing themselves for the release of the USDA
crop estimates on Thursday. Funds continue to be net buyers buying 2,500
soybeans, 1,800 meal and 1,300 oil yesterday.

The Average estimate for the upcoming crop report is a yield of 3.237 bil
bu., up from the USDA’s October forecast of 3.189 bil bu. The current record
soybean crop is 3.1 bil. bu. harvested in 2004.  Ending stocks are also seen
growing to aprox. 584 mil bu (average range of estimates) up from the USDA’s
October forecast of 3.189 bil bu. Chinese soybean imports are reported to be
2.250 mmt. up 9%. Brazil’s IBGE raised its soybean crop estimates 5% to 55.2
mmt. Overnight Malaysian Palm oil futures closed lower. Chinese Soybean,
Meal and oil futures closed higher.

eCBOT Overnight

Contract            Last      Net Change       High      Low

ZSX6                 655^0    0^2                   655^0    655^0

ZSF7                675^4    8^2                   676^0    667^4

ZSH7                686^0    7^4                   686^2    678^0

ZSK7                693^0    7^4                   693^0    685^6

ZSN7                700^0    7^4                   700^0    692^4

ZMZ6                199.7    2.3                    199.9    197.2

ZMF7                199.8    1.6                    200.7    198.7

ZMH7                201.9    1.1                    202.7    201.0

ZLZ6                 27.84    0.17                  27.84    27.62

ZLF7                 28.18    0.17                  28.18    28.00

Opening Calls: 6 to 8 cents higher.

Top News

-- Goldman Sachs released a press release said the Gold Man Sachs Index
commodity composition will not change in 2007. They also said investment in
commodity indexes will increase to $110 bil. as of January from $70 bil.
previously.

-- Government of Brazil believes another record soybean crop to be on the
horizon, predicting a 5.5% increase in total soybean production in '06/'07.
The current forecast pegs the crop at 55.2 million tons, compared to last
year's record 52.4 million ton harvest.

-- Chinese government said today that imports of soybeans were up 9.7%, from
January to October on the previous year. The increased demand has likely
come from China's crushing industry, which is attempting a comeback after
some hard times.

-- Funds were buyers in 2,500 Soybeans, 1,800 Meal and 1,300 Oil.

-- Deliveries:   Soybeans  1,352  thru  11/7/06   Term stopped  148   ADM
stopped  18    -- Chinese Soybean, Meal, Oil and Corn futures closed
higher.-- Soybean spreads: Tenco 2,000 SF/SX, 700 SX7/SN, ABN 1,500 SF/SN,
Rose 300 SX7/SN.

Cash Markets

-- CIF Soybeans steady up 2.  Nov. +51 to +53, LH Nov. +54 to +58, Dec. +59
to +63, Jan. +63 to +66, Feb. +48 to +53. Mar. +43 to +50

-- Processors:    Decatur  -10F    Danville -13   Bloomington  -14F  Gibson
City  -14F

-- Board Crush Margins:     Jan. 75.33  up  2.60   Mar. 75.33  up  2.60



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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