CHICAGO (Dow Jones)--U.S. soybean futures are poised for a higher start for Tuesday's day session, supported by broader based financial market gains following news of a political agreement among U.S. lawmakers to extend tax cuts.

Analysts project soybeans to open 10 cents to 15 cents higher on the Chicago Board of Trade. In overnight trading, the January future, the most active contract, was up 14 cents at $13.02 1/2 a bushel.

The tax cuts and extension of unemployment benefits in the agreement adds up to new deficit spending, leading to a reduction the value of currency, said Don Roose, president U.S. Commodities, an advisory and brokerage firm in West Des Moines, Iowa.

This action will entice investors to buy hard assets like commodities to offset those currency risks, Roose said.

Another supportive feature seen arising from the tax cut agreement was the reinstituting of the $1.00 a gallon biodiesel blenders tax credit that is projected to add 800 million gallons of U.S. biodiesel production in the U.S.

The biofuel incentive is the dominant feature for the soybean market, as it should increase the use of soyoil for biodiesel and thus effectively tighten the balance between supply and demand for U.S. soyoil at a time of strong global vegoil demand, Roose said.

Soyoil, a byproduct of soybeans, is the primary feedstock for U.S. biodiesel production. Since the biodiesel tax incentive expired last year, U.S. biodiesel output dropped to marginal levels, analysts said.

Furthering the gains is the threat of dryness in Argentina crop areas, which would cut the country's soybean output when large production in counted on from South America to counter robust global demand.

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

Meanwhile, prices are also expected to receive support from strong export demand. Soybean futures reached 26-month highs last month on worries that strong demand from China, the world's largest soybean importer, is draining supplies.

Analysts anticipate Friday's U.S. Department of Agriculture supply and demand report will be positive for soybean prices, reflecting tighter supplies amid increased export demand, Roose added.

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