Supportive outside markets and robust demand are expected to push Chicago Board of Trade soybean futures 15 to 20 cents per bushel higher early Monday after the market climbed overnight.

 

In overnight electronic trading, January soybeans jumped 19 1/2 cents to US$10.65 1/2.

 

Strong demand for U.S. soy makes traders "very reluctant to aggressively sell beans," said Tomm Pfitzenmaier, analyst for Summit Commodity Brokerage. Fund buying and weakness in the U.S. dollar should add fuel to the fire, he said.

 

"The technical indicators are all pointing higher, and with a firmer dollar, there is not much incentive to sell beans," he said. "Beans have been trending upward since early October. Demand attracts buyers."

 

January soybeans on Friday hit a fresh nine-week high and closed at a bullish weekly high close, a technical analyst said. He agreed bulls have the upside technical momentum.

 

The next upside technical objective for the bulls is pushing and closing January soybeans above solid technical resistance at the August high of US$10.68, the technical analyst said. The next downside price objective for the bears is pushing and closing the contract below major psychological support at US$10.00, he said.

 

First resistance for January soybeans is seen at Friday's high of US$10.50 and then at US$10.68, the technical analyst said. First support is seen at US$10.40 and then at the October high of US$10.29 1/4, he said.

 

FuturesTechs said in a note that it was "happily bullish" on CBOT soybeans after recent gains. The "big target" for January soybeans of US$10.68 "has been approached and this level should be under pressure" on Monday, according to the firm.

 

"The latest overnight session has seen a great deal of strength, suggesting a strong open to the week," FuturesTechs said.

 

In other news, the U.S. Department of Agriculture is due to issue an update on the U.S. harvest at 4 p.m. EST in its weekly crop progress report. The soy harvest should be "virtually done" as it was 89% complete a week ago, a CBOT floor analyst said. He estimated it would be at least 95% complete.

 

Crops in the U.S. Midwest could see some moisture, as rains return to the region Monday night and Tuesday, especially in western and northern areas, according to private weather firm DTN Meteorlogix. There should be more chances for precipitation during the next 10 days, but "nothing that looks to be too heavy," the firm said.

 

In Argentina, the Agriculture Ministry on Friday released its first crop forecasts since February, confirming private estimates for record soybean planting. It pegged Argentina's 2009-10 soy area at a record 18.5 million hectares, up 2.8% on the season. The Buenos Aires Cereals exchange forecasts 19 million hectares.