Soybean Complex: First Line Support

John LunneyGeneral Commentary

July Soybeans

     Soybeans continued slide to projected support area touched upon in yesterdays post. A moderate five way structural decline seems in place commencing from the 947.4 high. With divergence showing up in the hourly charts a rebound from this level could be in the cards. Any recovery of an non-impulsive nature should be met with resistance around 932-935. This in turn should give way to another round of selling. Extended downside target zone comes in at the lower 890’s. In the event of rebound which is able to hold above 935 a follow thru to challenge inner resistance line at 944-945 would be expected.. At this point I’d have to consider today’s low a b wave extreme. A breach of 945 extends to +/- 960.0.

 

Soybean Meal

        Weakness continues in the meal contract with today’s low coming in just above weekly inner support line of 296.0. A slip below follows thru to +/- 293.0-291.0. A hold/close below 295 sets up a continued decline which could extend to +/- 265.0. Difficult for me to categorize any rebound which would unfold. A hold above 302 reaches for 306.4. Fortifying this level sets up further gains targeting +/- 316.0.

 

Soybean Oil  

     A slight dip in the oil contract tests the lower cross zone support location. A hold below 31.80 won’t look healthy. I’d expect further weakness to extend to +/- 29.50. If prices were to stabilize above  32.15 another wave higher could be in process. Above 32.8 sets up advance targeting 33.80-34.00.