Linn Group Morning Soybean Comment

CHICAGO - Dec 11/06 - SNS -- Following is the morning soybean futures comment from the futures commission brokerage firm Linn Group.

Soybean Update: Soybeans closed 6 cents lower on Friday ending the week 19 ¾
cents lower than the previous week and leaving a weekly gap from 667 to 675
¾. Traders attribute the weakness  generally to year end profit taking from
funds. Volume was heavy with over 131,000 contracts trading and action was
volatile. Traders say a firming dollar and weak wheat market pressured the
market lower. Generally favorable weather conditions in South America are
also pressuring the Soybean markets, although there has been increasing talk
of hot weather and possible stress to crops.

The USDA released their Supply and Demand report  and the USDA pegged
2006/07 U.S. soybean ending stocks at 565 million bushels, below an average
of analysts' estimates for 568 million and unchanged from USDA's forecast in
November. Brazil grain analyst Agroconsult issued a new Brazil Soybean
Production estimate of 56.1 mmt. vs. their October estimate of 54.1.
Commitment of Traders report with Options as of December 5th. Shows funds
long 45,057 soybeans off 2939, long 15,412 Meal off 14,774 and oil long
62,377 off 3,439.  Chinese Soybean and oill futures closed higher, Meal
lower.  Malaysian palm oil futures closed higher. Traders in Kuala Lumpur
said palm was firm amid bullish price forecasts. Funds on Friday sold 2,000
Soybeans, 1,000 Oil and 1,500 meal.

Opening call  3 to 5 higher.

eCBOT Overnight

Contract            Last      Net Change       High      Low

ZSF7                661^0    5^0                   663^6    655^2

ZSH7                676^4    4^2                   678^4    669^4

ZSK7                688^0    6^6                   688^0    683^2

ZSN7                697^2    6^6                   697^2    690^0

ZMF7                188.3    0.2                    189.2    187.5

ZMH7                192.2    1.0                    192.2    191.0

ZLZ6                 28.48    0.20                  28.48    28.42

ZLF7                 28.86    0.23                  28.86    28.62

ZLH7                 29.31    0.23                  29.31    29.05

Early Opening Calls: mixed to slightly higher, post report

==USDA December Crop Data==

**US Dec. Soybean 06/07 Carryout: .565 bln bu. ; est. 0.57; Nov Rpt 0.565

**US Dec. Soymeal 06/07 Carryout: 300,000 T ; Nov Rpt 300,000 T

**US Dec. Soyoil 06/07 Carryout: 2.729 bln lbs. ; Nov Rpt 2.688

**World 06/07 Soybeans Carryout: 55.72 mmt; Nov Rpt 55.22

**World 06/07 Soymeal Carryout: 5.13 mmt; Nov Rpt 5.13

**World 06/07 Soyoil Carryout: 3.19 mmt; Nov Rpt 2.97

**Dec. Brazil 06/07 Soybean Output:  56.0 mmt; Nov Rpt 56.0

**Dec. China 06/07 Soybean Output:  16.20 mmt; Nov Rpt 16.2

**Dec. Argentina 06/07 Soybean Output:  42.0 mmt; Nov Rpt 41.3

Top News

-- Dalian China Soybean, and Oil futures closed higher, Meal a shade lower.

Deliveries:  Oil  309  Term put out  150    Meal  959  ADM  stopped  141

-- Brazil grain analyst Agroconsult issued a new Brazil Soybean production
estimate of 56.1 mmt. vs. their October estimate of 54.1 mmt.

-- Commitment of Traders report with Options as of December 5th shows Funds:

Soybeans          Long  45,057  off  2,939

Meal                 Long  15,412  off  14,774

Oil                    Long  62,377  off  3,439

-- Funds stayed on the sell side Friday selling: 2,000 Soybeans; 1,000 Oil;
1,500 Meal.

Cash Markets

-- CIF Soybeans steady. Dec. +58 to +60, LH Dec. +59 to +62,  Jan. +60 to
+64, 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. 72.75 off  .38   Mar. 68.27  off 1.17



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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