By Andrew Johnson Jr.

  Of DOW JONES NEWSWIRES


  CHICAGO (Dow Jones)--Soybean futures at the Chicago Board of Trade are
expected to start Wednesday's day session higher, climbing on fundamental
strength and technical buying.

  CBOT soybean futures are seen opening 10 cents to 15 cents higher, with soy
product futures up in unison with overnight price strength.

  Active contracts rose to new highs for the current rally, and traders expect
that strength to attract speculative buying, analysts said.

  Fundamentally, the market is expected to remain underpinned by tight supply
and demand fundamentals, with strong export demand, shrinking crop prospects
for South American production and planting concerns enticing traders to add
risk premium to prices, a CBOT floor analyst said.

  However, the lack of any other fresh news opens the door for choppy action
with participants looking to consolidate some positions on any sign of
exhausted buying near session highs, traders said.

  A technical analyst said market bulls still have the near-term technical
advantage, with first resistance for July soybeans seen at last week's high of
$11.31 and then at $11.40. First support is seen at Tuesday's low of $11.02 and
then at this week's low of $10.86 1/2.

  DTN Meteorlogix Weather said Midwest rainfall this week will keep field work
and planting slow, especially through the eastern and southern Midwest. Lighter
rains also delay and disrupt field work elsewhere in the region, but not as
much as the area to the south.

  In other news, with the bulk of the Argentine soy harvest complete, the crop
continues to show extensive drought damage that has hurt quality and quantity,
the Agriculture Secretariat said Tuesday in its weekly crop report. Sources in
Argentina's Agriculture Secretariat expect the 2008-09 soy crop to total a
dismal 33 million metric tons, according to a report in local daily Clarin last
week.

  In deliveries, May soyoil deliveries totaled 971 lots. Customer accounts at
Man Professional Clearing issued and stopped 754 lots and 837 lots
respectively. The last trade date assigned was May 12.

  In overseas markets, soybean futures traded on China's Dalian Commodity
Exchange settled higher Wednesday, supported by expectations of rising cash
prices. Crude palm oil futures on Malaysia's derivatives exchange ended higher
Wednesday on increased buying in the cash market and concerns about global
vegetable oil supply, said trade participants.