July Soybeans
End of week action saw a tight range as prices dipped to test 900.0 level and posted a slight rebound to settle at 904.4. Yesterday I suggested support would come in around the lower 890’s at the sloping channel target. Currently in place appears what to be a five wave structural decline from the iv wave high established just over 947. Early week action should tell the story. Weekly candle formation finishes in a bearish belthold fashion following last week’s hanging man candle discussed in earlier postings. There is, however, a daily doji in place which could be forecasting that a solid near term low might be in place. Holding above roughly 903 and being able to press thru and hold 910.4 would look favorable. Next upside comes in at 919-920. Extended gains target +/- 940. A lower open on Sunday evening won’t look healthy. Blowing out daily doji low looks to follow thru to 892-888.
Soybean Meal
Similar action unfolds in the meal contract. Prices dip to a pinch above targeted support level at 291.8 rising slightly to close at 293.6. Weekly candle formation displays an inverted hanging man formation, a potential bullish structure. One must be careful and wait for confirmation. The market would have to fortify 300.0 to trigger bullish setup. In that event the next overhead target would come in at +/- 311. Pressing above extends to +/- 318. If contract can’t hold up it will test near term support channel 290.5. Hold beneath 293 triggers further weakness which set sights on the 280 level.
Soybean Oil
Tight range established in today’s action. leaving a daily doji in place. Tough call hear as I find no definitive structural clues in place.Weekly candle closes beneath inner channel line at 31.80. One could, however,adjust it’s angle which would put this weeks low right on it. This also converges with hourly .786 retracement of 31.46 that was mentioned yesterday. A violation of 31.40 gives way to further weakness extending to 30.00-29.5. In the event that the market is able to fortify 32.00 I would be looking for further gains to press higher reaching for 32.8 level. A breach of 33.18 sets up advance to 34.00.