July Soybeans
Overnight activity saw beans slip under channel support to 912.2 holding up above x wave low of 909.8. This scenario was discussed in yesterdays posting. Choppy advance takes place in front of weather report. Following release market surges through earlier week’s high violating cross zone resistance. Prices continue higher to 945.4 just below fourth wave extreme at 947.4 and finish week at 942.2. This price action defines last weeks low as a v wave extreme. This points to further price gains. Above 947.4 contract sets sights on 970-980 resistance zone. Closing thru 980 targets +/- 1005. Underlying support come in at +/- 927.
Soybean Meal
I did not see today’s robust rally on the horizon. My interpretation of wave structure had me leaning towards future weakness. The landscape has changed. Although I cannot label this advance as impulsive its does, however, suggest further gains. Previously define support location at 293.4 holds up and today’s action sees us surging to 307 easing slightly to finish week at 304.4. I did mention in previous postings that a close above 300 would alter my view. First overhead resistance level comes at at +/- 309. Pressing above extends to roughly 316. Longer term objective extends to +/- 330.0 at the .618 retracement level. Downside support rest at 300-298.
Soybean Oil
Prices continue higher going into weekend finishing just off highs at 32.93. First overhead resistance level comes in at +/- 33.40 – 33.55. Fortifying this level extends to +/- 34.50. Slipping below 32.80 eyes channel support at 32.45. This has potential to establish another x wave low of a complex corrective rally and thus produce another a-b-c advance. A crack here weakens to 32.15.