Linn Group Morning Soybean Comment

CHICAGO - Nov 10/06 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybean Update: Soybeans declined by 8 ½ cents yesterday. Traders say
despite the lower than expected USDA soybean figures and above expected
weekly export sales that the market is following corn. Corn has been the
leader and its failure to make new gains caused weakness across the entire
grain complex. The products were mixed with soybean oil gaining on meal amid
strong crude oil prices as soybean biodiesel production continues to expand.
Some traders say it was buy the rumor sell the fact as the USDA’s numbers
although bullish were not enough to take us to new highs.

Fund trade picked up but not as much as many would have thought with the
large volume traded yesterday. Funds sold 5,000 soybeans, 3,000 meal and
bought 1,500 Oil. Cash traders report sales picked up slightly on Wednesday
when the market rallied but turned quiet by Thursday with the lower trade.
Spot basis bids were steady early Thursday. U.S. FOB Gulf soybean basis
offers fell for the second day due to a slow down in export demand. Rising
ocean freight at the Gulf has shifted export sales to the PNW traders say.
Brazilian govt. Agency Conab estimated Brazil’s soybean crop at 53.9 mmt to
55.2 mmt compared to 53.5 to 55 mmt. in Oct. Overnight Chinese Soybeans,
Meal and Oil all closed higher. Malaysian Palm oil futures closed lower.

Opening call 1 to 2 higher.

eCBOT Overnight:

Contract            Last      Change High      Low

ZSX6                 656^0    -1^4      656^2    654^4

ZSF7                671^6    2^2       672^4    666^6

ZSH7                684^0    2^6       684^0    678^4

ZSK7                689^0    0^0       689^4    686^2

ZSN7                698^2    1^6       698^4    693^0

ZMZ6                198.3    0.0        198.6    196.0

ZMF7                199.5    0.1        199.7    197.1

ZMH7                200.0    -1.9       200.7    200.0

ZLZ6                 27.83    0.12      27.88    27.60

ZLF7                 28.25    0.16      28.25    27.99

ZLH7                 28.46    0.02      28.46    28.46

Top News:

-- Deliveries:   Soybeans  1,736  thru 11/9/06  Term stopped  227    ADM put
out  201

-- Year to date Soybean Export Sales:  515 mil bu, including 28.2 mil bu
this week.  Last year at the same time, 378 mil bu were sold.

-- IEA predicts slower demand for fuel, could pinch soybean oil.

Early Opening Calls:  Steady to slightly lower

Cash Markets:

CIF Soybeans up 2.  Nov. +48 to +52, LH Nov. +51 to +55, Dec. +58 to +60,
Jan. +60 to +66, Feb. +48 to +53. Mar. +40 to +50

River house bids steady firm  STL. up 1 at –2, Morris Il. River up 2 at –31,
Peoria up 1 at –23.  Processor bids steady with pushes being paid east and
west.

Processors:    Decatur  -10F    Danville -15   Bloomington  -14F  Gibson
City  -14F

Board Crush Margins:     Jan. 78.17 up  2.45   Mar. 75.77 up  2.00



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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