The combination of weak fundamentals and bearish outside influences have Chicago Board of Trade soybean futures poised for a lower start to Tuesday's day session.

 

The market is seen extending the lower overnight theme, with a firmer U.S. dollar and lower crude oil futures leading prices lower in the absence of fresh supportive news.

 

CBOT soybeans are seen opening 4 cents to 6 cents lower.

 

Overnight, CBOT March soybeans ended 1 1/2 cents lower at US$9.39 a bushel, and May soybeans were 6 3/4 cents lower at US$9.41 1/4.

 

Higher Brazilian soybean production estimates coupled with a large number of deliveries of soymeal by a commercial firm provides fundamental pressure for prices, analysts said.

 

A lack of bullish items in the market is expected to keep a defensive tone in place. However, any sign of exhausted selling could spark brief bouts of buying, as traders cover positions in an effort to reduce risk exposure ahead of Wednesday's supply and demand report, said Victor Lespinasse, analyst with GrainAnalyst.com.

 

A market technician said first resistance for May soybeans is seen at Monday's high of US$9.52 3/4 and then at US$9.60. First support is seen at last week's low of US$9.37 1/4 and then at US$9.30.

 

The U.S. Department of Agriculture is scheduled to release its March supply and demand report Wednesday 8:30 a.m. EST. USDA is expected to tighten its March U.S. soybean supply and demand tables, with alterations to exports and crush projections trimming ending stock forecasts.

 

March soymeal deliveries totaled 400 lots. The house account at Bunge Chicago issued all 400 lots, while registering another 224 lots for delivery. "The move reflects the weakness of the current cash meal market and difficulty that firms are having slowing their crush amid building soy product stocks," AgResource Company said in a research note. A customer account at RJ O'Brien stopped 300 lots, while the house account at Term Commodities stopped 82 lots. The last trade date assigned was Feb. 26.

 

In other news, the National Commodities Supply Corp., or Conab, on Tuesday estimated Brazil's 2009-10 soy crop at 67.5 million metric tonnes. The prior estimate, given in February, was 66.7 million tonnes. The country's census bureau, the IBGE meanwhile estimated the 2009-10 soy crop at 66.9 million metric tonnes. This is up from its previous estimate of 66.1 million tonnes.