CHICAGO (Dow Jones)--U.S. soybean futures are poised to start higher in Monday's day session and recover from Friday's declines, following news China did not raise interest rates during the weekend.

Analysts project soybeans to open 10 cents to 12 cents higher on the Chicago Board of Trade. In overnight trading, the January futures, the most active contract, were up 11 3/4 cents at $12.84 3/4 a bushel.

Curtailed worries over a Chinese bank lending rate increase served as the catalyst for futures to bounce overnight after initially stumbling lower, AgResource Co. reported in a market note.

China did not increase lending rates over the weekend and instead raised banks' reserve requirement ratio by 50 basis points, the sixth such raise this year, to curb inflation. Traders and analysts had anticipated an interest rate increase, which would have had a greater effect on cash liquidity available for commodities markets and consuming industries.

"This was welcome news to the commodity markets that fear a slowdown in the Chinese economy that would curtail Chinese imports," said Brian Hoops, president of Midwest Market Solutions, in a market note.

Futures stumbled Friday, as traders trimmed some risky positions from the market. New government demand estimates tightened supply outlooks, but the data were previously factored into prices, leaving futures without new news to inspire buying at lofty price levels.

Soybean demand particularly from China helped propel futures to 26-month highs last month, with further support seen from ongoing dryness issues in Argentina. It is a necessity for South America to raise large crops this year to meet global demand, and the slightest indication they will not causes futures buying as a result.

Drier portions of Argentina's crop belt received just traces of rain during the weekend, and weather forecasts offer dry weather with warming temperatures this week, AgResource said in a market note.

Weakness in the U.S. dollar and gains in crude oil and metals are expected to generate broader-based strength in commodity markets as well.

On tap for Monday, the U.S. Department of Agriculture is scheduled to release its weekly export inspections report at 11 a.m. EST. Analysts anticipate soybean inspections for the week ending Dec. 9 in a range of 40 million to 46 million bushels.

-By Andrew Johnson Jr.; Dow Jones Newswires; 312-347-4604;