Soybeans
Yesterdays post suggested that the weekly candle in place should have a propensity to close at or near the lows. Also indicated in the report was a probability that the weeks average 14 period range measurement (28) would increase. This scenario did indeed play out as Friday’s action saw continued selling pressure driving the price of the July contract to the mid 920.0’s. The overall structure in the dominant time frames all point to lower levels. It should be noted that a confluence of data suggest short term support coming it at 910-900. Also considering multi timeframe momentum divergence, a rebound off this level could be in the cards. If this were to develop off this level it would be reasonable to anticipate a roughly 25 point counter trend rally. A hold below 900.0 wont find zone support until around +/- 850. Over all long term objective outline in earlier post still target an extreme downside around 750. Obviously conditions change and wave structures in place can evolved and produce a different outlook but until that time arises this appears to be the most likely resolution.
Soybean Meal
End of week action presses lower to settle just off weeks low. Outlook discussed in prior post remain in tact. Support converges zone checks in at 295-285. This level could put up a fight. Daily structure would indicate a 5 wave pattern. Price action, in the event of a rebound, will be monitored. Dominant structure still suggest a test and ultimate violated of the 270 area.
Soybean Oil
Consistent with the former products weeks final session closes on low right off the 31.5 level discussed in earlier weeks comments. Patterns suggest a violation of this level which would initially extend to 29.5-29.0. Difficult to pinpoint the next support level in the event of further selling pressure that stands in the way of an ultimate unwinding to +/- 23.00. A scenario which must be monitored would be if the contract would trade thru the 31.15 level and subsequently close above 32.1. This could lay the ground for a measureable retracement targeting 35.00. Should this play out in a non-impulsive fashion an ensuing sizeable selloff could develop ultimately bottoming out at +/- 23.00.
