Linn Group Morning Soybean Comment

CHICAGO - Dec 1/06 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybean Update: Soybeans ended up 3 ¾ cents on Thursday after a session of
choppy trade. While the market was higher most of the day it fell late in
the day and rallied in the last 15 minutes to close higher on the day.
Strong weekly export sales and talk of an additional sale of 30,000 mt. tons
to China which was not included in the weekly export sales data was
supportive as well. Traders say a late series of sell stops in corn drove
the bean market down but it managed to recover into the close.

Opening calls are lower based upon overnight trade. Traders indicate they
expect a technical setback from Thursdays higher trade. Overnight Japan and
South Korea buying beans. Funds on Thursday bought 3,000 beans, 5,000 Oil
and sold 1,500 meal. Malaysian Palm oil futures closed higher overnight.
Chinese Soybeans, meal closed lower.

eCBOT Overnight

Contract            Last      Net Change       High      Low

ZSF7                681^4    -4^0                  687^4    680^0

ZSH7                694^4    -5^6                  701^0    693^6

ZSK7                705^4    -2^2                  709^0    702^0

ZSN7                714^0    -2^0                  718^0    711^4

ZMZ6                192.4    -1.0                   193.4    192.0

ZMF7                195.4    -0.6                   196.7    195.1

ZMH7                199.5    0.1                    199.7    198.8

ZLZ6                 28.92    -0.26                 29.20    28.92

ZLF7                 29.35    -0.27                 29.76    29.35

ZLH7                 29.80    -0.27                 29.96    29.80

Opening Calls: 3 to 5 cents lower

Top News

-- Export News: CCC for Guatemala for 10,000 mt of soymeal on Dec 5

-- Export News: Sudan for 5,000 mt of US soyoil

-- Mexico reportedly active for US soybeans

-- Export sales continue rather robust considering the level of flat price
and firming ocean freight markets sales were 729 TMT or 27 mil bu plus 60
TMT new crop. Meal sales were 214 TMT with 130 TMT shipped. Oil sales were
32 TM with 2 TMT shipped

-- Brazil soybean areas receive above average rainfall, sometimes over
double normal conditions;  bodes well for '06/'07 crop

-- India keeps base soyoil & palm oil import prices unchanged according to
the country's finance ministry.

-- Malaysian crude palm futures close lower on Friday after an up day on
Thursday.  Traders says soyoil price declines & weak dollar helped the crude
palm.

-- According to the USDA, only 1% and 3% of US CRP ground is eligible to be
released in major corn/soybean and wheat growing states, respectively, for
the upcoming growing season.  A USDA report noted that of the 36.7 million
acres of Conservation Reserve Program (CRP) land, only 360,000 acres of
Iowa, Illinois, Indiana, Nebraska, and Minnesota farmland were eligible for
release in time for '07 corn/soybean planting

-- Deliveries: Dec Soymeal 1,108 total issuers; next date 11/29/06

-- Deliveries: Dec Soyoil 3,457 total issuers; next date 11/30/06

Cash Markets

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

Nov       +56/58 F           +57/59 Z              +42/45 Z          +57/65
H         415

Dec      +59/61 F           +60/63 Z              +45/48 Z          +57/63 H
420

Jan       +63/64 F           +52/54 H              +38/   H           +64/
H          450

Truck                Beans   Corn     Wheat   Meal Hi-pro        Oil

Chicago                       -26 F     -3 Z      -40 Z

Toledo              -16 F     -20 H   -40 Z

Dec ILL            -8 F      +13 Z                 -9 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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