By Andrew Johnson Jr.
Of DOW JONES NEWSWIRES


  CHICAGO (Dow Jones) - Chicago Board of Trade soybean futures are expected to
start Friday's day session steady to firmer, feeding off the overnight theme,
with traders squaring some positions ahead of the weekend.

  CBOT soybean futures are called flat to 2 cents higher.

  In overnight electronic trading, March soybeans finished 2 cents higher at
$9.72 1/2. March soymeal was $0.70 lower at $308.00 per short ton, while March
soyoil ended 8 points lower at 32.29 cents per pound.

  A quiet news front and the lack of changes in weather outlooks for Argentina
have traders looking for direction with a light technical bounce off the lower
end of the recent trading range providing some support, analysts said.

  A chance for more frequent scattered showers in Argentine next week are
expected to keep a lid on advances, but support from outside markets should
provide some strength in early action, analysts added.

  Nevertheless, traders expect choppy activity to surface once again as traders
take a cautious approach awaiting the latest weather forecast updates ahead of
the weekend, a CBOT floor analyst added.

  End of the week and month positioning is expected impact prices as well.

  A technical analyst said the next upside price objective for March soybeans
is to push and close prices back above solid technical resistance at this
week's high of $10.41 1/2 a bushel. The next downside price objective is
pushing and closing prices below solid technical support at the January low of
$9.57 3/4 a bushel.

  First resistance for March soybeans is seen at Thursday's high of $9.84 3/4
and then at $9.94. First support is seen at Thursday's low of $9.65 1/4 and
then at $9.57 3/4.

  The DTN Meteorlogix forecast said the next chance for some significant shower
and thunderstorm activity in Argentina appears to be Monday and Tuesday of next
week. Rainfall this week in some major corn and soybean areas along with cooler
temperatures has eased crop stress.

  However, there remains uncertainty as it regards the weather patterns during
the critical soybean pod filling month of February with the models giving mixed
signals, Meteorlogix said.

  Meanwhile, Argentina's corn and soybean crops received a slight reprieve from
the worst drought in 50 years that could trim expected losses in soy
production, industry members said Thursday. Fields in the central farming
provinces of Buenos Aires, Cordoba, Entre Rios and Santa Fe received up to 30
to 40 millimeters of precipitation Tuesday and Wednesday, up from average
rainfall of 10 millimeters that fell in erratic and scattered showers in recent
months.

  In overseas markets, China's soybean futures traded on the Dalian Commodity
Exchange will be closed until Feb. 1. The exchange is closed for the Chinese
New Year holiday.

  Crude palm oil futures on Malaysia's derivatives exchange ended higher Friday
for the first time this week as participants rushed to square off positions
ahead of a long weekend amid a stronger showing for soyoil and crude oil
futures, trade participants said. The benchmark April contract on the Bursa
Malaysia Derivatives ended MYR34, or 1.9%, higher at MYR1,779 a metric ton.