Linn Group Morning Soybean Comment

CHICAGO - Dec 4/06 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybean Update: Soybean Futures closed lower by 8 ½ cents on Friday setting
back from Thursdays rally and an additional loss overnight of 6 ½ cents  in
the January contract. Traders say profit taking and weakness in corn and
Meal causing pressure. Traders say as we approach the $7.00 level the market
is struggling holding these levels. Soybean oil has been the strongest of
the complex as it hovers near 2 year highs. Strong vegetable oil demand
worldwide has been supportive. Heavy deliveries against meal and oil
pressured Friday’s markets early. Funds on Friday sold 2,000 soybeans, 1,500
meal and bought 2,000 oil.

On Friday the CFTC released its weekly commitment of traders report and
shows as of November 11th including options funds long 47,996 up 10,419,
Meal long 30,186 down 2,950 and Oil long 65,816 down 4,561. A CFTC spokesman
said Friday a report on a revamped Commitment of Traders report including
information on Hedge Funds will be released in the next two weeks. The CFTC
in June said it was looking at its weekly report as many trade groups were
asking the agency to include a category for Index Funds. Overnight weakness
in crude, a firming dollar and lower prices overnight in Malaysian palm oil
futures are expected to pressure markets early this morning. Malaysian Palm
oil futures closed lower overnight. Chinese Soybeans, meal and oil all
closed lower overnight.

Opening call : 5 to 7 lower.

eCBOT Overnight

Contract            Last      Net Change       High      Low

ZSF7                670^4    -6^4                  675^0    669^4

ZSH7                684^4    -7^4                  688^6    683^2

ZSK7                693^4    -6^4                  696^6    693^4

ZSN7                703^6    -6^0                  708^0    703^6

ZMZ6                186.2    -2.2                   187.3    186.2

ZMF7                188.8    -1.6                   190.5    188.8

ZMH7                192.8    -1.5                   194.3    192.8

ZLZ6                 28.97    -0.26                 29.01    28.97

ZLF7                 29.36    -0.31                 29.65    29.36

ZLH7                 29.82    -0.33                 30.09    29.82

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Top News

-- Export News: South Korea will be in for Corn this week, Japan for
Soybeans

-- A CFTC spokesman said Friday a report on a revamped Commitment of Traders
report including information on Hedge Funds will be released in the next two
weeks.  The CFTC in June said it was looking at it’s weekly report as many
trade groups were asking the agency to include a category  for Index Funds.

-- The Commitment of Traders report with Options as of November 11 shows
Funds: Soybeans: Long 47,996 up 10,419; Meal: Long  30,186 off 2,950; Oil:
Long 65,816 off 4,561.

-- Chinese Soybean, Meal, Oil and Corn futures closed lower.

Cash Markets

-- CIF Soybeans steady. Dec. +58 to +60, LH Dec. +59 to +63,  Jan. +63 to
+65, Feb. +47 to +52. Mar. +43 to +48, Apr. +32 to ??

-- Processors:    Decatur  -8F    Danville -10   Bloomington  -14F  Gibson
City  -10

-- Board Crush Margins:     Jan. 68.25 off  3.27   Mar. 67.11 off  2.09



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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