Linn Group Morning Soybean Comment

CHICAGO - Nov 9/06 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybean Update: Soybeans surged again on Wednesday closing 10 ¾ cents higher
in the January contract. The market continued to gain in price keeping pace
with corn which made new 10 year highs yesterday. Volume was heavy in
Soybeans with 108,836 contracts traded and funds were active on the buy side
buying 1,000 soybeans, 5,000 meal and 3,000 Oil.

Today the USDA released their November crop production report. The USDA
reports US Nov. Soybean 2006/2007 Crop Production at 3.204 bln bu. which is
below the average estimates of 3.25 bln. bu. and below the October Report of
3.189 bil. bu. Weekly export sales were also released today and sales for
soybeans came in at 768,300 mt which is also below the range of analysts
expectations of 500,000 to 700,000 mt. These reports combined are bullish
for the market traders say and early calls are higher. Overnight Malaysian
Palm oil futures closed higher. Chinese Soybean and Meal futures closed
higher. Oil closed lower.

Opening Call 3 to 5 cents higher.

eCBOT Overnight

Contract            Last      Net Change       High      Low

ZSX6                 665^4    -0^6                  666^4    664^0

ZSF7                678^2    0^2                   679^4    676^0

ZSH7                689^0    0^2                   690^0    686^6

ZSK7                694^0    0^0                   695^0    692^2

ZSN7                701^4    -0^6                  702^0    699^0

ZMZ6                201.8    0.8                    202.2    200.1

ZMF7                202.8    0.8                    202.8    201.2

ZMH7                205.0    0.6                    205.5    204.1

ZLZ6                 27.75    0.03                  27.88    27.62

ZLF7                 28.12    0.00                  28.21    28.01

ZLH7                 28.45    0.01                  28.46    28.42

--USDA Nov. Crop Production--

US

**US Nov. Soybean 06/07 Crop Prod: 3.204 bln bu.; est. 3.25; Oct Rpt 3.189

**US Nov. Soybean Yield: 43.0 bpa; est. 43.5 bpa; Oct Rpt 42.8 bpa

**US Nov. Soybean 06/07 Carryout:  .565 bln bu. ; est. 0.58; Oct Rpt 0.555

**US Nov. Soymeal 06/07 Carryout: 300,000 T ; Oct Rpt 300,000 T

**US Nov. Soyoil 06/07 Carryout: 2.688 bln lbs. ; Oct Rpt 2.694

World

**World 06/07 Soybeans Carryout: 55.22 mmt; Oct Rpt 55.06

**World 06/07 Soymeal Carryout: 5.13 mmt; Oct Rpt 5.14

**World 06/07 Soyoil Carryout: 2.97 mmt; Oct Rpt 3.10

**Nov. Brazil 06/07 Soybean Output:  56.0 mmt; Oct Rpt 56.0

**Nov. Argentina 06/07 Soybean Output:  41.3 mmt; Oct Rpt 41.3

**Nov. China 06/07 Soybean Output:  16.2 mmt; Oct Rpt 16.2

--USDA Weekly Export Sales--

**USDA Soybeans 06/07 Export Sales Net: 768,300 mt; expected 500-700,000

**USDA Soybean Meal 06/07 Export Sales Net: 265,900 mt

**USDA Soybean Oil 06/07 Export Sales Net: 100 mt

Top News

-- Export News: Taiwan bought 12,000 mt. Soybeans for Nov/Dec.

-- Brazil's agriculture statistic office released a report today estimating
corn/soybean output for the coming year. Soybeans were seen slightly higher,
less than 1%, to 53.9-55.2 million tons.  Corn registered a slightly higher
increase, going up about 1-2% to 42.9-43.5 million tons.  The corn
production estimate is higher than 2005's total output of 41.7 million tons.
Soybean acreage was slightly higher on the low side of the range, but
largely unchanged.

-- Funds all on the buy side Wednesday buying 1,000 Soybeans, 5,000 Meal,
3,000 Oil.

-- Chinese Soybean and Meal futures closed higher, Corn and Oil lower.  --
Soybean spreads: Tenco 500 SF/SN, 200 SN/SF, 500 SX/SX7,Rose 400 SX7/SN.

-- CBOT Deliveries:   Soybeans  1,351   thru  11/8/06   Term stopped  159--
The USDA Ag attaché in Brazil issued a Soybean production estimate of 55.5
mmt.  This compares with the USDA ‘s recent estimate of 56.0 mmt. Brazil
grain analyst up their Soybean production estimate to 55.9 mmt. vs. their
Previous estimate of 52.6 mmt.

Cash Markets

-- CIF Soybeans off  2 to 4.  Nov. +46 to +49, LH Nov. +50 to +55, Dec. +55
to +60, Jan. +58 to +66, Feb. +48 to +53. Mar. +43 to +50

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

-- Board Crush Margins:     Jan. 75.72  off  1.18   Mar. 73.77  off  1.56



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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