Soybeans
July soybeans struggle to gain any footing after fighting off the 910-900 cross support zone. An unimpressive and sloppy rebound runs outta steam at 920.6. I interpret this failed advance as a fourth wave correction of a lower degree. This would in turn foreshadow a violation of recent lows targeting 902.o to 898.0. This extension of weeks range would matches the 14 period ATR. A follow thru slips to 890.o. These levels discussed are produced by a downward sloping pitchfork and channel line convergence zone. An under-throw or even violent violation could occur. Longer term time frame wave structure suggests this. A hold below 900.0 finds next support zone at roughly 850.0.
Soybean Meal
As discussed in yesterdays post, August Meal rest right at inner pitchfork line and the .786 entrancement from last February’s low. Also to note is the divergence in the RSI. I would consider this a mere short covering target rather than an outright establishment of a long position. Dominant time frames still suggest lower prices, however, markets are seldom linear in their price movement. If the market were to hold below 294.0 a follow thru targeting +/- 270.0 would be the outlook. Longer term projections favor a decline to 240.0-230.0.
Soybean Oil
August Soybean oil close holds below trend-line support 31.8. If the weeks range were to extend to the downside a low of 30.0-29.8 would seem probable. A close above 31.8 alters the short term tech setup. This would point to a recovery targeting 32.6-33.0. Structural evidence in the longer term charts suggest a future unraveling extending to +/-23.0.