CHICAGO (Dow Jones)--Soybean futures are seen starting Monday's day session on firm footing, following through on the higher overnight theme with outside support from a sharp drop in the value of the U.S. dollar.

Strength in overnight trade is serving as an early signal of price direction.

Overnight, Chicago Board of Trade July soybeans were 3 3/4 cents higher at $9.50, and November soybeans were 4 3/4 cents higher at $9.14.

Weakness in the U.S. dollar is expected to buoy the market in early trade, with psychological support from broad based gains in financial and commodity markets expected to attract buyers.

A lower U.S. dollar is supportive to commodities, as it makes U.S. exports more competitive in world markets.

Traders anticipate prices may chop around within the market's recent trading range, with participants that bet on prices continuing to slide looking to cover some short positions on potential upside price movement, a CBOT floor analyst said. Firm cash markets amid scarce farmer selling is seen continuing to support old crop contracts.

The markets upside potential is seen limited however, by favorable near term crop conditions and a lack of fresh demand news to attract outright buying, he added.

A technical analyst said market bulls and bears are on a level near-term technical trading field as trading has become choppy. The next downside price objective for July soybeans is pushing and closing prices below solid technical support at the February low of $9.20. The next upside technical objective for July soybeans is pushing and closing prices above solid technical resistance at the June high of $9.58 3/4.

The National Oilseed Processors Association said 127.8 million bushels of soybeans were crushed in May, down from 131.7 million in April and below the average analyst estimate of 130.2 million. The daily soybean crush rate tailed off in May because seasonal down time in the industry and tight soybean supplies for crushing translated into a smaller month-over-month crush pace, analysts said. Soyoil stocks are pegged at 2.732 billion pounds, down from 2.811 billion in April and below the average analyst estimate of 2.830 billion.

The U.S. Department of Agriculture is scheduled to release its weekly export inspections report at 11 a.m. EDT. The USDA will also release its crop progress report at 4 p.m. EDT. Analysts are looking for national seedings to be about 80% to 92% complete, with crops rated in good to excellent condition estimated in a range of 74% to 76%.

In overseas markets, crude palm oil futures ended higher on Malaysia's derivatives exchange Monday as market participants expect estimates of Malaysian exports in the first half of June to rise compared with a month ago and in line with other commodity markets. CPO for August delivery traded at the Bursa Malaysia Derivatives ended 1% higher at MYR2,410/ton

Soy markets at China's Dalian Commodity Exchange will be closed June 14-16 for a public holiday.


-By Andrew Johnson Jr.; Dow Jones Newswires; 312-347-4604; andrew.johnsonjr@dowjones.com