By Rebecca Townsend
 
   Of DOW JONES NEWSWIRES
 
 
   CHICAGO (Dow Jones)--Chicago Board of Trade soybean futures closed higher
 Thursday, driven by dramatic gains in crude oil and a weakening dollar.
 
   September soybeans settled 47 1/4 cents higher at $13.41 a bushel. The most
 actively traded November soybean contract ended 48 cents higher at $13.48 after
 briefly touching the exchange-imposed 70-cent maximum trading limit, inspiring
 5-cent gains on synthetic trades in the December.
 
   By finishing above $13.41, the bulls broke the solid technical-support level
 of the November contract outlined by a market technician earlier in the day.
 The November contract also finished above the 10-, 20- and 200-day moving
 averages.
 
   December soymeal settled $5.00 higher at $358.70 per short ton. December
 soyoil finished limit up, 250 points higher, at 56.35 cents per pound.
 
   The ICE Futures U.S. Dollar index lost nearly 1%, trading down 0.769 point at
 76.189 as crude oil sustained gains of more than $5.
 
   The chance of rain through the weekend has been factored into the market, and
 investors are waiting for less-than-anticipated precipitation levels to add
 bullish fuel, traders and analysts say.
 
   Exports sales for new-crop beans are "well ahead of the last couple years,"
 said Bill Nelson, an analyst at Wachovia. And despite China's net cancellations
 of 31,400 metric tons reflected in the U.S. Department of Agriculture's weekly
 export sales report released Thursday, old-crop sales are also ahead of the
 previous year.
 
   As the eastern leg of the 2008 U.S. Pro Farmer Tour moved into east-central
 Iowa, participants noted unplanted fields, spotty, below-average pod counts and
 better soil moisture than seen on the first three days.
 
   On the western leg of the tour, participants noted good vegetation on soybean
 plants in southwest Minnesota, a lack of moisture stress and solid pod counts.
 
   On Friday at 10 a.m. EDT, Pro Farmer will release a crop estimate, which is
 based in part on tour participants' calculations.
 
   The current Corn Belt forecast shows probable rains, "but widespread 1-inch
 amounts are necessary to alleviate dryness with 2 inches ideal," said Mike
 Tannura, T-Storm Weather president and meteorologist, noting 2 inches is very
 unlikely and 1 inch is not probable.
 
   "Most of the anticipated rainfall for the coming week will be less than
 ongoing drying loss for the same period and therefore evoke little or no change
 in the total soil condition," said meteorologist David Salmon of Weather
 Derivatives. "I advised my subscribers last night to expect continued erosion
 of crop conditions, though hardly a famine."
 
   Funds bought an estimated 6,000 contracts.
 
 SOY PRODUCTS
 
 
   Soy-product futures followed an explosive soybean rally Thursday. Soyoil drew
 additional support from higher palm oil prices, traders and analysts said.
 
   December oil share ended at 43.99%, and the November/December crush ended at
 61 cents.
 
   Speculative funds bought an estimated at 2,000 lots in soymeal and bought
 3,000 lots in soyoil.
 
   Indonesia will lower its export tax on crude palm oil to 10% for September,
 down from the current tax rate of 15%, said a senior government official
 Thursday.
 
   "Crude palm oil prices have fallen from highs of $1,200 a metric ton earlier
 this year to current levels of around $850/ton now, so the government will
 adjust the tax rate accordingly," said Bayu Krisnamurthi, deputy to Indonesia's
 coordinating minister for economy.
 
   Krisnamurthi said Indonesia is poised to increase palm oil production in the
 next few years to produce 20 million tons of crude palm oil, while exports are
 expected at 15 million tons.
 
   The lower crude palm oil tax should encourage purchasers to increase stocks
 in the expectation of increased exports.