U.S. soybean futures are poised for a higher start to Wednesday's day session, stabilizing after Tuesday's sharp selloff.

In overnight trading, Chicago Board of Trade March soybean futures were 5 1/2 cents higher at $13.03 1/2 a bushel; May soybeans, the most active contract, were up 4 1/2 cents at $13.15 1/2. New crop November futures were up 1 1/4 cents at $12.75 1/2. Analysts expected soybeans to open 3-5 cents higher.

The market found some value after extending recent declines overnight, with tight supplies overall and the emergence of end user buying supporting prices, said Don Roose, president U.S. Commodities, a West Des Moines, Iowa, brokerage.

Prices were overdue for a modest recovery following an 11% break in prices in the past two-weeks, with weakness in the U.S. dollar and higher crude oil futures supporting prices as well.

Higher crude oil prices support soyoil, a product of soybeans, due to its use in making renewable fuels.

The tightness of projected 2010-11 supplies and the uncertainty of 2011 acreage and weather, leave little margin for error in new crop production. This is supporting new crop futures, represented by the November contract, particularly after a large break in prices.

The market needs to keep prices at levels that will entice farmers to plant needed soy acres in the face of strong competition for acres from corn and cotton.

Insufficient increases in acreage will require higher-than normal crop yields come summer, if another year of tight supply is to be avoided.

However, traders are leery of additional washouts of excessive market length, as traders remain cautious of speculative traders continuing to reduce exposure in the market amid global economic concerns.

"Political unrest in the Middle East, including Libya and Egypt continues to overhang the markets, as traders fear the turmoil will turn into a slowing global economy," according to a Midwest Market Solutions market note.

Futures tumbled to their exchange imposed 70 cent daily trading limits Tuesday, succumbing to anxiety about unrest in the Middle East and worries about demand. Fears the recovering global economy could sputter out sparked broad based losses in grain and oilseed futures.

South American harvest pressure, as Brazil's harvest expands, and record production forecasts limit near term advances as well.

Brazil and Argentina are the world's second- and third-largest producers of soybeans, respectively, behind the U.S. and are counted on to relieve the strain on U.S. supplies in the spring of 2011.

-By Andrew Johnson Jr.; Dow Jones Newswires