Linn Group Morning Soybean Comment

CHICAGO - Dec 8/06 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybean update:  Soybeans ended their recent slide on Thursday closing up 7
¾ cents in the January contract. Traders say after opening higher and
falling off, the market inched higher the last couple hours of trading.
Volume was moderate to heavy with soybeans trading an estimated 103,231
futures and 16,171 Options. Commodity funds bought an estimated 2,000
soybeans, 2,000 meal and even in oil. Traders say the rally was due in part
to decent export sales numbers but point to strength in corn again as the
catalyst to the stronger soybean market.

Opening calls today are slightly lower and traders say good south American
crop weather and plentiful stocks of soy continue to act as an anchor on the
market. Early opening calls are 1 to 2 lower in Soybeans, .50 lower in Meal
and steady to a nickel higher in soybean oil. Positioning ahead of Monday's
USDA supply/demand report

expected. An average of analysts' estimates pegged 2006/07 U.S. soy ending
stocks at 568 million bushels, up from the USDA forecast in November for 565
million. Overnight Chinese Soybean and Meal futures closed higher and Oil
Lower. Malaysian Palm oil futures closed higher.

eCBOT Overnight

Contract            Last      Net Change       High      Low

ZSF7                660^6    -1^2                  664^4    659^4

ZSH7                674^2    -2^0                  678^2    674^0

ZSK7                684^2    -1^2                  687^2    684^2

ZSN7                693^0    -1^4                  697^0    693^0

ZSQ7                697^6    -0^2                  697^6    697^6

ZMF7                189.6    -0.9                   190.9    189.5

ZMH7                192.9    0.0                    193.9    192.5

ZLZ6                 28.38    0.04                  28.40    28.38

ZLF7                 28.79    0.06                  28.89    28.73

ZLH7                 29.20    -0.01                 29.25    29.20

Early Opening Calls: 1 to 2 lower

Top News

-- Weekly Soybeans sales pegged at 24.5 mil.bu. taking YTD to 621 mil.bu.
vs. 455 mil.bu. last year.

-- JP Morgan commodity outlook suggests Ag & Metal prices will remain
bullish into 2007 on tight supply outlook & good market demand.

-- Funds bought 2,000 Soybeans, 2,000 Meal and were even in Oil.

-- Deliveries:  Soyoil  556  Term stopped  195; Meal 981 no stopper.

-- Soybean spreads: ADM 2,000 SF/SH, Tenco 1,000 SF/SH, Fimat 5,000 SH/SF,
Ocon 2,000 SH/SF

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

Cash Markets

-- CIF Soybeans steady off  1.  Dec. +57 to +61, LH Dec. +58 to +61,  Jan.
+59 to +62,Feb. +47 to +54. Mar. +44 to +47, Apr. +32 to ??

-- Processors:    Decatur  Even    Danville -10   Bloomington  -8  Gibson
City  -5

-- Board Crush Margins:     Jan. 73.13 off  .16   Mar. 69.44  off .52



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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