Linn Group Morning Soybean Comment

CHICAGO - Nov 14/06 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybean Update: Monday was a sell day in the Grain complex with soybeans in
the Jan contract selling off and closing 5 cents lower with corn and wheat
closing lower as well. Traders say the trade was not as active and turned
lower with local selling hitting sell stops. Traders say that the soybean
market is also being pressured by the tail end of the harvest session. Cash
traders say that soybeans for shipment in the last half of November traded
at 45 cent premium to the CBOT January contract. January basis values
dropped slightly with deferred months holding steady. Traders said sales to
China have been lacking as a recent rise in soybean prices has pressured
crushing margins in China and other buyers are scattered. Oil World said on
Tuesday China has made unusually large purchases of Argentine and U.S.
soyoil recently, but may turn to palm oil because of rising soy prices.

Monday The Commitment of Traders report was released showing funds long
42,379 Soybeans up 10,026 and Meal long 30,796 up 8,991 and Oil long 47,907
up 11,881. Fund trade on Monday was slow with funds selling 2,000 Soybeans,
2,000 Meal and bought 3,500 Oil. The weekly USDA crop progress report shows
soybean harvest at 94% complete vs. 97% last year and 94% average for this
time of year. The NOPA crush was released today NOPA said on Tuesday the
U.S. soy crush in October

totaled 155.0 million bushels, near trade estimates for 155.6 million and
above the 151.0 million crushed in October 2005. Overnight Chinese Soybeans
and Meal closed lower. Malaysian Palm oil futures closed mixed.

eCBOT Overnight

Contract            Last      Net Change       High      Low

ZSX6                 645^0    -1^4                  647^4    645^0

ZSF7                660^4    3^0                   661^6    656^4

ZSH7                672^4    3^2                   673^4    668^4

ZSK7                679^0    1^2                   682^2    677^0

ZSN7                689^0    2^0                   690^2    686^2

ZMZ6                192.6    0.8                    193.2    191.5

ZMF7                193.9    0.8                    193.9    192.7

ZMH7                195.5    0.0                    196.0    195.0

ZLZ6                 27.90    -0.09                 28.06    27.81

ZLF7                 28.35    -0.01                 28.39    28.20

ZLH7                 28.59    -0.13                 28.72    28.59

Early Opening Calls: steady/+1c

Top News

**NOPA Oct. Soy Crush: 154.984 mil bu, Sept = 137.320 mil bu; Average
estimate 155.6 mil.bu.

**NOPA Oct. Soymeal Exports: +72,767 tons to 490,852

**NOPA Oct. Soybean Oil Production: +9.4% to 1.7648 mil pounds

**NOPA Oct. Soybean Oil Stocks: virtually unchanged to 2.6301 mil pounds

-- Chinese Corn futures are closed  higher this morning, Soybeans and Meal
lower.

-- The Commitment of Traders report with Options as of  November 17 shows
Funds

Soybeans          Long  42,379     up  10.026

Meal                 Long 30,796      up  8,991

Oil                    Long  47,907     up  11,881

-- The USDA weekly crop progress report shows Soybean harvest 94% complete
vs. 97% last year and 94% average.

-- Soybean spreads:  Tenco 800 SF/SN, 500 SF/SH, JPM 500 SF/SH, ABN 300
SF/SX7

Cash Markets

-- CIF Soybeans off 3 to 5.  Nov. +40 to +45, LH Nov. +43 to +53, Dec. +52
to +56, Jan. +56 to +63, Feb. +48 to +53. Mar. +40 to +48

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

-- Board Crush Margins:     Jan. 79.01 unch   Mar. 71.52 off  4.40



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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