By Andrew Johnson Jr.

  Of DOW JONES NEWSWIRES


  CHICAGO (Dow Jones)--Chicago Board of Trade soybean futures are poised for a
firm start to Friday's day session, with tight old crop supplies and the lack
of any room for error in new crop production underpinning prices.

  CBOT soybean futures are seen opening 7 cents to 10 cents higher.

  CBOT soybean prices were higher overnight. August was 9 1/2 cents a bushel
higher at $11.80 while November climbed 10 1/4 cents to $10.40 1/4.

  Bullish fundamentals will remain an underlying driver of prices, with the
ability of the market to hold together on technical charts supporting prices,
said Don Roose, president U.S. Commodities.

  Limited old crop inventories will continue to tighten moving forward, and
with processors scrambling for supplies in the face of strong soymeal demand
for export and domestic use, that's buoying nearby contracts, Roose said.

  Meanwhile, new crop production has little room for error amid the tightness
of old crop supplies and that should support deferred months, as traders remain
content to keep risk premium in the market despite improving Midwest weather
conditions.

  Otherwise, traders will eye movements in outside financial markets for
directives. In early action, crude oil futures, equities and the U.S. dollar
index are all trading higher.

  A technical analyst said the next upside price objective for November
soybeans is to push and close above Thursday's high and the top of the
potential flag pattern at $10.49 3/4. The next downside price objective is
pushing and closing prices below $10.15.

  DTN Meteorlogix said hot Midwest weather over the weekend is not expected to
last long enough to put much stress on crops. Episodes of scattered showers and
thunderstorms during the next 7 days will maintain mostly favorable soil
moisture conditions although a few areas in the Midwest could use more rain.

  In overseas markets, soybean futures traded on the Dalian Commodity Exchange
settled lower Friday as the market lacked favorable fundamentals to support
recent gains. The benchmark May 2010 soybean contract settled CNY32 a metric
ton lower at CNY3,667/ton.

  Cash soybean prices in China's major producing areas were higher in the week
ended Friday, boosted by a surge in futures prices.

  Crude palm oil futures on Malaysia's derivatives exchange ended higher Friday
as bargain hunting towards the end of trade pulled prices up. Meanwhile an
expected drawdown of palm inventories due to steady exports supported prices,
trade participants said. The benchmark October CPO contract on the Bursa
Malaysia Derivatives settled MYR15 higher at MYR2,340 a metric ton.